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2022 (6) TMI 301 - AT - Central ExciseAdjustment of interest and penalty from the refundable amount - Whether from the refundable amount, adjustment have been rightly made for the amount of interest and penalty, which is sub judice before the higher court of appeal? - HELD THAT:- Section 11 of the Central Excise Act grants power to the Central Excise officers, being in the nature of special power of recovery, which in the nature of ‘garnishee proceedings’. The Adjudicating Authority is empowered to not only adjust arrears of tax recoverable from the assessee from any money/refund which is in the hands of the authority payable to the assessee, further empowers to issue certificate for adjustment to another Central Excise Officer who may have any money payable to the assessee, and also empowers to issue certificate to the District Collector for recovery of tax dues as arrears of land revenue. Such power of adjustment cannot be exercised for demand of tax/interest/penalty which is sub judice. Admittedly, in the facts of the present case, the amount of interest and penalty are sub judice before this Tribunal and this fact was admittedly in the knowledge of the court below. The adjustment made from the amount refundable to the appellant is bad and the same is set aside. The Adjudicating Authority directed to grant the refund of balance amount of Rs. 42,02,518/- in cash alongwith interest under Section 35FF of Central Excise Act - Appeal allowed - decided in favor of appellant.
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