2018 (3) TMI 1223 - AT - Central Excise

Rebate claim - Appropriation against rebate - Held that - the duty liability arising have been discharged in full by the appellant; there is no scope for recovery of any amount by appropriation of the amounts sanctioned as rebate - appeal allowed - decided in favor of appellant.

Summary

Issues:
Appropriation of sanctioned refunds towards duty liability arising from confirmed demands.

Analysis:
The Appellate Tribunal CESTAT MUMBAI dealt with the issue of appropriation of sanctioned refunds towards duty liability arising from confirmed demands. The Commissioner of Central Excise (Appeals), Mumbai - II had upheld the appropriation of two sanctioned refunds against confirmed demands while allowing the refund of the amount appropriated towards three other confirmed demands. The original authority sanctioned a rebate amount, but ordered appropriation against demands confirmed in specific order-in-original numbers. The appellant contended that three of the orders-in-original had been set aside by the Tribunal, restricting the appropriation to two demands for a specified amount.

The learned Counsel for the appellant argued that one demand had been set aside by the Tribunal in a specific case, and the other demand had been decided against them, leaving no amount for recovery by appropriation. After hearing the arguments, the Appellate Tribunal noted that the duty liability arising from the remaining two matters had been discharged in full by the appellant based on the decisions of the Tribunal. Consequently, the Tribunal found no scope for recovery of any amount by appropriation of the sanctioned rebate amounts. Therefore, the impugned order was set aside, and the appeal was allowed.

This judgment highlights the importance of proper appropriation of refunds towards duty liabilities arising from confirmed demands. It emphasizes the significance of Tribunal decisions in determining the discharge of duty liabilities and the scope for recovery through appropriation. The case underscores the need for thorough analysis of specific order-in-original numbers and Tribunal decisions to ensure accurate appropriation of sanctioned refunds.