Refund under appellate order remains enforceable despite Tribunal appeal, with undertaking securing repayment if the appeal succeeds

The imported products were treated under the appellate order as assessable under Item 68 rather than Item 18-IV of the Central Excise Tariff, and consequential refund of the duty difference was directed. The filing of an appeal to the Tribunal did not suspend the petitioners' entitlement to that refund under the subsisting appellate order. An undertaking to repay the amount if the respondents later succeeded was accepted as sufficient protection for the respondents, and immediate refund with interest on default of timely payment was directed.

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Issues: Whether the petitioners were entitled to refund of the amounts due under the appellate order notwithstanding the respondents' appeal to the Tribunal.

Analysis: The appellate order had already held that the imported products were not assessable under Item 18-IV of the Central Excise Tariff but were assessable under Item 68, and it granted the petitioners consequential refund of the difference. The mere filing of an appeal to the Tribunal did not suspend or defeat the petitioners' present entitlement under that appellate order. The petitioners also offered an undertaking to repay the amounts if the respondents ultimately succeeded in appeal, which protected the respondents' interest.

Conclusion: The petitioners were held entitled to immediate refund of the amounts due under the appellate order, with interest payable in default of timely refund, and the undertaking was accepted.

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