2021 (10) TMI 1373 - AT - Central Excise

Rebate claim - duty paid on the goods, which were exported by the appellants - amount adjusted against the said amount of rebate, which is allegedly due from the appellants - HELD THAT - From the provisions of Section 11 of the Central Excise Act, it is evident that the adjustment in the present case has been made bona fide as permissible under the provisions of the Act. There are no merit in this appeal. Thus, the appeal is dismissed.

Summary

Issues:
Claim for rebate adjustment against dues confirmed in a previous order

Analysis:
The case involved M/s. Mangalam Cement Ltd. filing a rebate claim for duty paid on exported goods. The Assistant Commissioner sanctioned the rebate claim but adjusted an amount against dues confirmed in a previous order. The Commissioner (Appeals) upheld this adjustment. The appellant appealed to the Tribunal, arguing that the issue regarding the dues had not attained finality as it was pending before the Rajasthan High Court. The appellant contended that the adjustment made was illegal and relied on various case laws to support their argument.

Regarding the appellant's argument, the Tribunal considered the provisions of Section 11 of the Central Excise Act. Section 11 allows for the deduction or recovery of any duty or sum payable to the Central Government from any money owing to the person. The Tribunal noted that the adjustment made in the present case was permissible under the Act. The Departmental Representative supported the adjustment, citing a case where a similar adjustment was upheld by the High Court. The Tribunal found no merit in the appellant's appeal and dismissed it.

In conclusion, the Tribunal upheld the adjustment made against the rebate claim, citing the provisions of Section 11 of the Central Excise Act. The Tribunal found the adjustment to be legal and in accordance with the Act. The appeal was dismissed, and the decision was pronounced on 7th October 2021.