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TMI Blog2017 (10) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... President And Mr. V. Padmanabhan, Technical Member Present Ms. Rinki Arora, Advocate for the appellant Present Shri Shravan Bansal, DR for the respondent ORDER Per: V. Padmanabhan The appeal is against the order in appeal no.135/2011 dated 13.06.2011. 2. The appellant is in the manufacturing of chewing tobacco falling under chapter 24 of the Schedule to the Central Excise Tariff Act. The appellant filed the refund claim for ₹ 22,52,419/- regarding the excise duty paid in advance on chewing tobacco under the compound levy scheme. The refund was sanctioned by the jurisdictional authorities but instead of refunding the said amount in cash, the Jurisdictional Deputy Commissioner vide his order dated 04.11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt due to the party cannot be adjusted against demands which are under challenge in the appellate fora. In the present case, even though the refund order for an amount of ₹ 15,73,149/- was passed on 16-11-1998. The same was not actually paid to the appellants and adjusted against some pending demands under Section 11 of the Central Excise Act 1944. Section 11 is reproduced below. SECTION 11. Recovery of sums due to Government. - In respect of duty and any other sums of any kind payable to the Central Government under any of the provisions of this Act or of the rules made there under (including the amount required to be paid to the credit of the Central Government under Section 11D), the officer empowered by the [Central Board o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of confirmation of a demand, no finality has been reached. To put in other words, those demands cannot be called as arrears. There is a possibility that these demands could be set aside by the Commissioner (A) or the Tribunal or any other judicial forum. That is why large number of decisions hold that refund cannot be adjusted against the demands which are sub-judice. In the present case, the action of the authorities in adjusting the refund is against the legal provisions. Section 11 should be involved only when the demands have reached finality and should not be invoked even at the initial stage. Section 11BB provides interest for delayed refunds. This is squarely applicable to the present case. The Commissioner (A) has not at all given ..... X X X X Extracts X X X X X X X X Extracts X X X X
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