2018 (8) TMI 1659 - AT - Central Excise

Appropriation of amount from deposits made during the course of the proceedings for finalization of assessment - Held that - It is seen that the duty liability, as well as the refund arising in consequence of the finalization of provisional assessment, has been computed correctly; there is no dispute by the appellant on this aspect. However, the interest liability is disputed. It is seen that the appellant had made detailed submissions and furnished computation before the first appellate authority which had not been taken into account or considered - matter requires reconsideration - appeal allowed by way of remand.

Summary

Issues: Dispute over appropriation of deposits made during assessment finalization.

The appeal concerned the dispute over the appropriation of funds deposited during the finalization of assessment. The appellant had cleared goods on provisional assessment and later filed a refund claim. The original authority sanctioned the refund but directed the retention of a specific amount towards interest liability. The first appellate authority upheld this decision, leading to the current appeal. The appellant argued that the interest amount calculated was erroneous and cited a court decision to support their claim that a lesser amount was due. The Tribunal noted that while the duty liability and refund calculation were correct, the interest liability was in dispute. The appellant had provided detailed submissions and computations to the first appellate authority, which were not considered. Therefore, the Tribunal allowed the appeal and remanded the case to the original authority to ascertain the correct interest amount payable by the appellant in accordance with the law.