2016 (12) TMI 986 - AT - Central Excise

Quantification of interest liability - whether CVD portion to be deducted from duty amount while calculation of interest? - Held that - It is seen that in para-14 of the order, Settlement Commission had directed that the department, while calculating the interest amount, shall deduct the CVD portion from the duty amount. Finding of the Commissioner (Appeals) in para-12 of his order that appellant s representation to adjust the interest demand with their eligibility for refund cannot be entertained, therefore is not in consonance with the directions of the Settlement Commission. At the same time, I observe that appellant has also created further confusion by submitting two claims of different amounts of refund pursuant to Settlement Commission order, a fact which has been taken note of in the order of lower appellate authority - I am of the considered opinion that interest of justice will be best served by remanding the matter back to the original authority for de novo consideration of the matter - appeal allowed by way of remand.

Summary

Issues: Calculation of interest liability as ordered by the Settlement Commission, non-receipt of required documents by the appellant, confusion regarding refund claims.

Analysis:

1. Calculation of Interest Liability: The appellant, engaged in the sale of refurbished photocopier machines, faced a demand for Central Excise duty due to clearance without payment. The Settlement Commission settled the liability, including interest, which the appellant paid. However, discrepancies arose regarding the interest amount and refund claims. The Commissioner (Appeals) noted the confusion in the appellant's representations and rejected the refund claim. The Tribunal observed that the appellant's request to adjust interest with the refund claim was not in line with the Settlement Commission's directions. Consequently, the matter was remanded to the original authority for a fresh consideration following the Settlement Commission's directives.

2. Non-Receipt of Required Documents: During the proceedings, the appellant claimed not to have received certain documents from the department, crucial for their case. The department contended that the documents were provided in soft copy to the appellant's authorized signatory. Despite this, the issue persisted, leading to delays and procedural hurdles. The Tribunal emphasized the importance of ensuring that all necessary documents are available to the appellant for a fair hearing and directed the original authority to verify the document exchange and allow the appellant a reasonable opportunity to present their case.

3. Confusion Regarding Refund Claims: The confusion regarding the refund claims stemmed from discrepancies in the amounts claimed by the appellant post the Settlement Commission's order. The Commissioner (Appeals) highlighted the inconsistency in the appellant's submissions and advised proper procedures for claiming refunds under the Central Excise Act, emphasizing the need to establish excess payment and avoid unjust enrichment. The Tribunal acknowledged the conflicting refund claims and instructed the original authority to address this issue comprehensively during the fresh consideration, ensuring clarity and adherence to legal procedures.

In conclusion, the Tribunal's judgment focused on resolving the issues related to interest liability calculation, document provision, and refund claims in a manner consistent with legal directives and procedural fairness. The decision to remand the matter for a thorough reevaluation by the original authority aimed at upholding the principles of justice and procedural correctness in line with the Settlement Commission's directions.