2005 (9) TMI 573 - AT - Central Excise

Summary

Issues:
- Appeal by the Revenue challenging the order of the lower appellate authority regarding the refund claim of Rs. 96,646/-

Analysis:
1. The appeal was brought by the Revenue against the order of the lower appellate authority concerning the refund claim of Rs. 96,646/- made by the assessee. Despite notice, there was no representation from the respondents. The learned SDR reiterated the grounds of appeal, emphasizing that the duty amount involved in the excess stock of finished goods found in the respondent's factory was not liable to be refunded.

2. The department had initially raised a demand of duty on the assessee based on the results of stock verification. Subsequently, during the adjudication process, the party paid an amount of Rs. 1,20,808/-. While the adjudication was ongoing, the party filed a refund claim. The original authority confirmed a demand of duty amounting to Rs. 96,646/- against the assessee, which was set aside entirely by the Commissioner (Appeals) in an order dated 20-11-2001. This decision rendered the assessee eligible for claiming a refund of Rs. 96,646/-, a claim that was rejected by the original authority but allowed by the Commissioner (Appeals).

3. The Tribunal emphasized that the refund of Rs. 96,646/- was a direct consequence of the order-in-appeal dated 20-11-2001 by the Commissioner (Appeals), which had become final and binding on the department. As a result, the department was obligated to refund the amount to the assessee. The Tribunal deemed the department's appeal as ill-conceived and subsequently dismissed it.

This judgment highlights the importance of honoring final and binding decisions, emphasizing the department's obligation to refund the amount in question as per the order of the Commissioner (Appeals).