The Revenue challenged the order of the CESTAT setting aside recovery proceedings initiated for refund earlier granted to the assessee. The factual background showed that the refund was sanctioned based on the prevailing Supreme Court judgment in SRD Nutrients, which was later overruled.
The Court held that refunds granted in accordance with binding law prevailing at the relevant time cannot be recovered merely because of a subsequent change in law. The appeal filed by the Revenue was dismissed.