The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the sanctioned refund claim can be adjusted to any dues of excise duty as per section 11 of the Central Excise Act,1944.
Astral Pharmaceuticals Industries, the appellant assessee appealed against the order passed by the Commissioner (Appeals) for upholding the decision of the Assistant Commissioner for processing the refund claim to the confirmed dues.
During the hearing of the appeal none appeared on behalf of the assessee and Ajay Kumar Samota appeared for the revenue department.
The counsel for the revenue department contended that the Assistant Commissioner processed the refund claim of the assessee and thereafter the entire amount which was deposited by them had been sanctioned and as per the provisions of Section 11 of Central Excise Act and the confirmed dues had been appropriated from the refund amount due to the assessee was as per the law and liable to be sustained.
The Bench observed that there was no stay on the confirmed dues and as per the provisions of the Central Excise Act and the officer sanctioning the refund was authorized to make deductions of any tax dues which are recoverable from the assessee.
Also held that If any amount was due to an assessee by way of refund that shall be adjusted against the said arrear demand.
The two-member bench comprising Mr Ramesh Nair (Judicial) and C.L Mahar (Technical) upheld the decision of the Assistant Commissioner while dismissing the appeal filed by the assessee.
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