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2007 (7) TMI 455 - AT - Central Excise
Issues involved: Adjustment of cost audit fees against refund claim u/s Section 11 of the Central Excise Act, 1944.
Issue 1: Adjustment of cost audit fees against refund claim The appeal was against the adjustment of Rs. 96,000, being the cost audit fees of one unit, against the refund claim of the appellant. The Commissioner (Appeals) had upheld the adjustment, leading to the appeal to the Tribunal. The Tribunal had remanded the matter back to the Commissioner (Appeals) for reconsideration in light of relevant decisions. The Commissioner (Appeals) reaffirmed the correctness of the adjustment, prompting the current appeal. Details: The appellant disputed the cost audit fees raised by the cost auditor for one of its units and sought a refund from the Government. The Assistant Commissioner adjusted the fees against the refund claim, which was upheld by the Commissioner (Appeals). The Tribunal remanded the matter, but the Commissioner (Appeals) again upheld the adjustment, leading to the current appeal. Issue 2: Interpretation of Section 11 of the Central Excise Act, 1944 The main issue revolved around the interpretation of Section 11 of the Central Excise Act, 1944, regarding the recovery of sums due to the Government. The appellant argued that the adjustment of dues from one division against the refund claim of another unit of the same company was not permissible under the law. Details: The Tribunal analyzed Section 11 of the Central Excise Act, which allows for the recovery of sums due to the Government from any money owing to the person from whom such sums are recoverable. The Tribunal concluded that adjusting the dues of one division against the refund claim of another unit was not in line with the provisions of Section 11. In conclusion, the Tribunal set aside the impugned order, allowing the appeal with any consequential relief. The decision was based on the finding that adjusting the cost audit fees of one division against the refund claim of another unit was not permissible under Section 11 of the Central Excise Act, 1944.
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