2000 (9) TMI 79 - HC - Central Excise

Summary

Issues involved: Adjustment of refund under Section 35F of the Central Excise Act, 1944 against other demands pending appeal before the Commissioner of Appeals.

Summary:
The petitioner challenged the adjustment of the refund of the amount deposited under Section 35F with respondent No. 2 against other demands pending appeal. The High Court considered the nature of pre-deposit under Section 35F, which is refundable if the appeal succeeds. The Court noted that the amount cannot be considered recoverable or due until the appeal process is completed, citing precedents from High Courts of Delhi, Allahabad, and Bombay. The Court disagreed with the respondent's action of adjusting the amount under Section 11 while the appeal and stay application were pending. The Court emphasized the importance of fair proceedings and quashed the impugned order, ruling it as unsustainable in law.