Consequential duty refund cannot be denied after exemption is granted and left unchallenged, even if the notification is rescinded.

Refund of duty was treated as a consequential relief flowing from an unchallenged order granting exemption benefits. Once the exemption benefit had been allowed and the Revenue had not questioned that order, the subsequent refund claim could not be defeated on the ground that the exemption notification had later been rescinded or that Section 11B did not permit cash refund of the set-off. The operative principle was that a refund directly arising from an accepted exemption determination remains enforceable as consequential relief. The assessee was therefore entitled to the refund on the stated basis.

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Issues: Whether refund of duty, claimed after grant of the underlying exemption benefit, could be denied on the ground that the exemption notification had been rescinded and that Section 11B did not permit cash refund of the set-off.

Analysis: The refund arose directly from the order granting the appellant the benefit of the exemption notification. Once the benefit had been allowed and the order was not challenged by the Revenue, the refund claimed was only a consequential relief flowing from that determination. The grounds relied upon to refuse refund could not defeat such consequential entitlement.

Conclusion: The refund could not be denied on the stated grounds, and the assessee was entitled to the consequential refund.

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