TMI Blog2017 (7) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... ion for recovery of interest amount there-from, suo motu recovery of such amount by the Department is contrary to the statutory provisions - appeal allowed - decided in favor of appellant. - Excise Appeal No.2395 of 2011, E/CROSS/50/2012 - A/56507/2016-SM[BR] - Dated:- 29-12-2016 - Mr S K Mohanty, Member (Judicial) Ms Sukriti Das, Advocate for the Appellants Shri M R Sharma, DR for the Respondent ORDER Per: S K Mohanty Recovery of interest amount in respect of rebate claim, without issuance of show cause notice, is the subject matter of present dispute before the Tribunal. 2. Brief facts of the case are that the appellant is engaged in the manufacture of various patented and proprietary medicines, falling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Department vide its communication dated 17.1.2012, called upon the appellant to deposit the amount of ₹ 64,45,681/- in cash. In the meanwhile, while processing the rebate claims, the learned Asstt. Commissioner appropriated an amount of ₹ 26,76,321/- towards the alleged interest liability on the amount of ₹ 64,45,681/-, erroneously refunded earlier. On appeal against such appropriation amount towards refund, the learned Commissioner (Appeals) upheld the order of the lower authority and rejected the appeal filed by the appellant, vide the impugned Order-in-Appeal dt. 09.08.2011. Hence, the present appeal is before the Tribunal. 3. The learned Advocate appearing for the appellant submits that without issuance of show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Central Excise Act, 1944. Further, once it has been held that the appellant is entitled for rebate claim, in absence of any specific provision for recovery of interest amount there-from, suo motu recovery of such amount by the Department is contrary to the statutory provisions. Hon ble Karnataka High Court in the case of Stella Rubber Works (supra) have held that by virtue of section 11 AA ibid, the Revenue was not empowered to adjust the amount due to the Revenue, by way of interest, out of the amount due from the department to the assessee by way of rebate. Thus, in my considered view, recovery of interest amount from the rebate claim filed under Rule 18 of the Central Excise Rules, 2002 is not proper and justified. 8. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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