2004 (6) TMI 156 - AT - Central Excise

Summary

Issues:
1. Refund of redemption fine wrongly held by department
2. Appellants' suo motu credit in PLA objected by department
3. Lower authorities' failure to implement appellate order

Analysis:
1. The case involved the appellants paying a redemption fine of Rs. 1 lakh to redeem a confiscated vehicle. Upon succeeding in their appeal before the tribunal, they were entitled to a refund of the redemption fine. However, the department failed to grant the refund and held onto the amount. The appellants then took matters into their own hands by taking credit of Rs. 1 lakh in their PLA using the TR-6 challan related to the redemption fine payment. The department objected to this action, treating the credit as non-existent and the subsequent dispatches as removals without duty payment.

2. The tribunal noted that the department should have refunded the Rs. 1 lakh to the appellants after their successful appeal. The lower authorities' refusal to implement the appellate order and objections to the appellants' suo motu credit were criticized as highly deplorable. The denial of credit in the PLA was deemed unjustifiable, especially considering the department's failure to grant the refund promptly after the appellants' success. The tribunal found fault with both the appellants' actions and the department's response, stating that holding onto the refund claim and objecting to the credit aggravated the situation.

3. The tribunal concluded that the lower authorities' approach was unacceptable, as they were obligated to follow the appellate orders and sanction the refund of Rs. 1 lakh to the appellants. Consequently, the tribunal allowed the appeal and set aside the order passed by the Commissioner (Appeals), highlighting the department's failure to act in accordance with the law and the appellants' right to the refund following the successful appeal.