Delhi HC says Adjudication Cannot Ignore an earlier Appellate Order setting aside the matter

Welspring Universal had obtained a ₹76.72 lakh refund of CENVAT credit, which was subsequently challenged by the Department. While the Department’s appeal was pending, a separate demand proceedings continued; CESTAT ultimately set aside the Department’s appellate order and expressly upheld the refund. Delhi HC held that the Additional Commissioner could not later adjudicate the demand on the basis of an order that had ceased to operate and ignored the subsequent CESTAT determination.