Binding Full Bench ruling required refund and recovery orders to be set aside and reconsidered afresh.

Orders rejecting refund applications and directing recovery of duty already refunded could not stand because they were passed without the benefit of the binding Full Bench ruling that had resolved the main controversy. The Bombay High Court set aside the impugned refund-rejection and recovery orders and remitted the matter to the Collector for fresh determination in accordance with the Full Bench decision.

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Issues: Whether the orders rejecting the refund applications and the order directing recovery of duty already refunded could stand in view of the Full Bench decision and required to be set aside and remitted for fresh decision.

Analysis: The impugned orders had been passed without the benefit of the Full Bench ruling, which had already concluded the main controversy. In view of that binding decision, the rejection of the refund claims and the subsequent recovery order could not be sustained. The matter therefore required reconsideration by the Collector in accordance with the Full Bench view.

Conclusion: The impugned orders were set aside and the proceedings were remitted to the Collector for fresh determination in accordance with the Full Bench decision.

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