1990 (3) TMI 198 - AT - Central Excise

Summary

Issues:
1. Adjustment of refund claim against duty short paid without issuing a notice.
2. Interpretation of Section 11 of the Central Excises & Salt Act, 1944.
3. Comparison of the present case with the precedent case of Rasoi Vanaspati & Industries Ltd.

Analysis:

1. The appeal before the Appellate Tribunal CEGAT, CALCUTTA involved the issue of the Assistant Collector adjusting a refund claim against a duty short paid without issuing a notice to the appellants. The advocate for the appellants argued that such adjustment was not permissible without prior notice, citing a precedent case. The Collector (Appeals) had rejected the appeal, leading to the matter being brought before the Tribunal for review.

2. The Tribunal analyzed the application of Section 11 of the Central Excises & Salt Act, 1944, in the context of the present case. Section 11 empowers the officer to deduct the amount payable from any money owing to the person from whom such sums may be recoverable. The Tribunal noted that the Assistant Collector had referred to the amounts due from the appellants and observed that the action taken was justified under this section. The Tribunal highlighted that the absence of a stay order and the pending revision application differentiated the present case from the precedent case, justifying the Assistant Collector's actions.

3. In comparing the present case with the precedent case of Rasoi Vanaspati & Industries Ltd., the Tribunal found that the circumstances were different. In the Rasoi case, no notice had been issued before the adjustment of dues, unlike in the present case. The Tribunal emphasized that the pendency of the Revision Application and the failure to obtain a stay order legitimized the Assistant Collector's actions in the present matter. The Tribunal concluded that the order-in-appeal was correctly upheld by the Collector (Appeals) and dismissed the appeal, finding no reason to interfere with the decision.

Overall, the Tribunal's decision upheld the Assistant Collector's adjustment of the refund claim against duty short paid, based on the provisions of Section 11 of the Central Excises & Salt Act, 1944, and the specific circumstances of the case, distinguishing it from the precedent case cited by the appellants.