2011 (7) TMI 352 - AT - Central Excise

Demand - Adjustment - Appellant filed some refund claims, which were allowed by the Assistant Commissioner but adjusted against the outstanding demand of duty - The appellant s grievance is that in terms of the Tribunal order, such outstanding amounts were required to be re-quantified - Accordingly, set-aside the impugned order and remand the matter to original adjudicating authority to first re-quantify the demand, after observing the principles of natural justice and than to adjust the demand against the sanctioned refund claims of the appellants - Appeal is thus allowed by way of remand.

Summary

Issues:
1. Proper quantification of demand against the appellant.
2. Adjustment of outstanding amounts against refund claims without re-quantification.
3. Validity of re-quantification done by Commissioner (Appeals).
4. Justification of adjustments made without proper re-quantification.
5. Principles of natural justice in re-quantifying demands and adjusting against refund claims.

Analysis:

Issue 1: The Tribunal directed the lower authorities to quantify the demand against the appellant and remanded the matter to the original adjudicating authority for proper quantification.

Issue 2: The appellant filed refund claims which were allowed but adjusted against the outstanding demand without re-quantification. The appellant contended that adjustments were not proper as re-quantification was not done as per the Tribunal's order.

Issue 3: The Commissioner (Appeals) re-quantified the demands and adjusted them against the refund claims. The appellant argued that the re-quantification was on the higher side, significantly reducing the duty amount payable.

Issue 4: The Revenue argued that the appellants did not challenge the quantification in their appeal, and the Commissioner (Appeals) was not justified in re-quantifying without prior notice to the appellants.

Issue 5: The Tribunal found that re-quantification by the lower authorities and the Commissioner (Appeals) was not done properly. It emphasized the need for re-quantification after observing the principles of natural justice before adjusting demands against refund claims. The Tribunal set aside the impugned order and remanded the matter for proper re-quantification and adjustment in accordance with natural justice principles.