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TMI Blog2009 (4) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... . The adjudicating authority has appropriated an amount of Rs. 1,57,739/- as interest payable by the respondent on the confirmation of the demand by the Tribunal vide Order No. 1476 to 1478/06 dated 26-6-06. [2007 (207) E.L.T. 534 (T)] 2. The learned SDR would forcibly argue that the amount of interest is payable on the amount of duty which has been confirmed by this Tribunal in it's order dated 26-6-2006. It is his submission that the grounds of appeal clearly bring out the reason for setting aside the impugned order. The same are reproduced herein below: "4.1 From the CESTAT FO No. 1973/2005, dt. 22-11-2005 (a copy of the same is placed for record/reference), it is very clear that the assessee was saddled with the liability fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t can be appropriated from any sum owing to that person without issuing a show cause notice under the provisions of Section 142(1)(a) of Customs Act, 1962 made applicable for realization of arrears under Central Excise in pursuance to Section 12 of Central Excise Act, 1944 read with Govt. of India notification No. 68/63-C.E., dated 4-5-1963 as amended from time to time and by Notification No. 48/97-C.E. (N.T.), dated 2-9-1997. Hence, it is incorrect on the part of Commissioner (Appeals) to say that the said appropriation was without observance of the principles of natural justice." 3. On the other hand learned counsel appearing on behalf of the respondent would submit that the interest amount which is sought to be appropriated is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Rules, 1944 as per Adjudication Order No: 18/2000 dated 17-4-2000 in C. No. V/28/15/72/99 Adj (OR. No. 88/99) and the said amount is appropriated towards the refund due exercising his powers under the provisions of Section 142(l)(a) of Customs Act, 1962 made applicable for realization of arrears under the Central Excise in pursuance of Section 12 of Central Excise Act, 1944 read with Govt. of India Notn No 68/63-Central Excise dated 4-5-1963. The appellants question the legality and propriety of appropriation of the amount of Rs. 1,57,739/- on the grounds that (a) no notice had been issued which is gross violation of principles of natural justice (b) the same is not due to be paid by the Saggonda Unit (c) CESTAT, Bangalore vide Fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e refund of Rs. 4,00,000/-, when the existence of demand itself in doubt, and sustainability of demand questionable. The appellants should be refunded the said amount. ORDER The impugned order is set aside to the extent of appropriation of amount of Rs. 1,57,739/- and the appeal filed by the appellant is allowed." 6. We find that the learned Commissioner (Appeals) in his order has gone into the details of the issue. As has been already observed by us, there is no determination of the interest payable by the respondent. In the absence of any determination, arbitrary appropriation of amount is not contemplated in the statute. The provisions of statute contemplate the appropriation of the "amounts due". We hold that the learned Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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