Finality of appellate refund orders bars contradictory re-adjudication in a later departmental appeal, restoring the sanctioned part refund.

Where an appellate order on a refund claim has already attained finality, the same authority cannot, in a later departmental appeal, pass a contradictory order setting aside the very sanction previously upheld. The document explains that a refund arising under service tax exemption notifications could not be wholly rejected after part refund had already been sustained and no further departmental challenge was filed. A later order taking the opposite view created conflicting determinations and was treated as void and non est. The refund position originally upheld was restored, and the assessee's claim was accepted to the extent earlier sanctioned.

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Issues: Whether the Commissioner (Appeals) could, in the department's appeal, set aside the earlier appellate order that had already upheld sanction of part refund and thereby reject the entire refund claim.

Analysis: The refund claim arose under Notification No. 41/2007-ST dated 06.10.2007 as amended by Notification No. 17/2008-ST dated 01.04.2008 and Notification No. 17/2009-ST dated 07.07.2009. The appellant's appeal against partial rejection had already been decided in its favour to the extent of sustaining the sanction of part refund, and that order had attained finality as no further challenge was filed by the department. The same appellate authority could not, in a later departmental appeal, pass a contrary order setting aside the very sanction already upheld. The impugned order therefore resulted in conflicting determinations and was treated as void and non est. The show cause notice also proposed only restriction of the refund claim, not rejection of the entire claim, which further supported the assessee's case.

Conclusion: The impugned order was unsustainable and was set aside; the earlier order sanctioning part refund stood restored, in favour of the assessee.

Ratio Decidendi: Once an appellate order on the same refund claim has attained finality, the same authority cannot, in a later proceeding, pass a contradictory order overturning that concluded determination.

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