2010 (11) TMI 311 - AT - Central Excise

Refund Claim - The appellant has deposited Rs. 5,00,000/- during investigation - Adjusted against the demand of adjudication order - The show cause notice was issued and the proceedings in this case has not yet been finalized as the appeal against the demand against which the refunded amount has been adjusted are still pending before this Tribunal - In that event, the refund claim which has been sanctioned to the appellants cannot be refunded till final disposal of their Appeal by this Tribunal.

Summary

Issues:
Appeal against adjustment of refund against Government dues.

Analysis:
The appellant contested the impugned order where their refund was adjusted against Government dues. The case background reveals that certain demands were confirmed against the appellant, who paid Rs. 5,00,000 during the investigation. Subsequently, some demands were set aside in remand proceedings. The appellant then appealed to the Tribunal, which stayed the demand confirmed by the adjudication order. During this period, the appellant filed a refund claim for the Rs. 5,00,000 deposited earlier. However, the refund was adjusted against dues as per the adjudication order, leading to the current appeal.

The consultant for the appellant argued that since the refund claim was adjusted against a demand stayed by the Tribunal, the adjustment was improper and should be set aside. After hearing the arguments, the judge examined the case's factual matrix. It was noted that the appellant had deposited Rs. 5,00,000 during the investigation, and the proceedings were still ongoing as the appeal against the demand had not been finalized. Therefore, the refund claim could not be released until the final disposal of the pending appeals by the Tribunal.

In conclusion, the judge ruled that the refund claim, which had already been sanctioned, could not be released to the appellant until the final disposal of their pending appeals. The appeal was disposed of with this observation, emphasizing that the lower authorities should withhold the refund until the resolution of the appellant's pending appeals.