Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2022 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 559 - AT - Central ExciseAdjustment of interest amount from sanctioned rebate claim - Price Variation Clause - interest payable in respect of duties paid in terms of supplementary invoice, which were raised due to price variation clause - HELD THAT - he appellant has given cogent explanation regarding the delay in filing the appeal before the Commissioner (Appeals). Accordingly, the delay in filing the appeal before the Commissioner (Appeals) is condoned by this Tribunal. I further find that the Adjudicating Authority have adjusted the amount of ₹ 8,12,603/- towards interest, which are not adjudicated dues. The power of adjustment out of the amount of refund / rebate or any other sum payable to the assessee is contained in Section 11(a) of the Central Excise Act, which provides - in respect of any duty or any other sum of any kind payable to the Central Government under any of the provisions of this Act or the rules thereunder, the Officer empowered to levy such duty or require to the payment of such sums, may deduct the amount so payable, from any money owing to the person from whom such sums may be recoverable or due, which may be in his hands or under his disposal or control or may be in the hands or under disposal or control of such other officer. From a plain reading of the provisions of Section 11(1), it is found that the Central Excise Officer is empowered to adjust only the unpaid adjudicated dues. As Section 11(1) also empowers the Central Excise Officer to recover the dues, even by way of attachment and sale of excisable goods, and if the same are not recovered, is also empower to prepare a certificate duly signed by him specifying the amount due from the person liable to pay, and send it to the Collector who on receipt of such certificate, shall proceed to recover the amount specified in the certificate as if it were an arrear of land Revenue - such extra ordinary power to recover are only available for recovery of adjudicated dues, or admitted dues as per return, if the same are unpaid. Under such special power under Section 11(1), the Central Excise officer cannot recover the un-adjudicated dues, as has been done in the present case. The amount adjusted ₹ 8,12,603/-, being by way of un-adjudicated dues of interest, is bad - Appeal allowed - decided in favor of appellant.
Issues:
1. Adjustment of interest amount from sanctioned rebate claim. 2. Delay in filing appeal before the Commissioner (Appeals). 3. Authority's power to adjust dues under Section 11(a) of the Central Excise Act. Analysis: 1. The issue in this appeal revolved around the adjustment of interest amount from the sanctioned rebate claim. The Adjudicating Authority observed that the appellant paid duty based on supplementary invoices due to price variation, leading to interest liability. The Authority adjusted ?8,12,603 from the sanctioned rebate claim, which the appellant contested, leading to the appeal. 2. The appellant faced a challenge regarding the delay in filing the appeal before the Commissioner (Appeals). The Commissioner dismissed the appeal as it was beyond the limitation period of 45 days. However, the appellant argued that the delay was circumstantial and related to confusion about the scope of the appeal. The Tribunal condoned the delay considering the explanations provided. 3. The Tribunal analyzed the Authority's power to adjust dues under Section 11(a) of the Central Excise Act. The Act empowers officers to adjust unpaid adjudicated dues from refunds or other sums payable to the assessee. However, the Act restricts this power to recover only adjudicated or admitted dues. Recovery of un-adjudicated dues, as done in this case, was deemed impermissible under the Act. The Tribunal held that the adjustment of ?8,12,603 from the rebate claim, representing un-adjudicated interest dues, was unlawful. The appeal was allowed, directing the Authority to refund the balance rebate amount with interest within sixty days. This decision highlighted the limitations on the Authority's power to recover dues and emphasized the importance of adhering to legal procedures in such matters.
|