9911796707
TMI Blog2015 (3) TMI 1124X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the appellant that this amount could not have been adjusted. Learned counsel drew my attention to the order portion of the order-in-original wherein the original adjudicating authority stated that : "I hereby sanction refund of Rs. 44,887/- (service tax of Rs. 43,584/- plus Edu. Cess of Rs. 864/- and S&H Edu. Cess of Rs. 439/-) in terms of Notification No. 41/2007-S.T., dated 6-10-2007 as amended, however, the same is appropriated and adjusted towards the interest amount of Rs. 8,85,326/- arising out of EA-2000 audit objection in respect of para 7 for the period ending December, 2007 which is pending recovery as on date." It is his submission that in the absence of a specific order confirming demand and interest, adjustment could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and there is no need for a separate demand or a show cause notice or appropriation. Therefore, the adjustment made by the lower authority and upheld by the Commissioner (Appeals) is in order. 3. I have considered the submissions. No doubt, the liability which is admitted and not adjusted will have to be paid with interest. Admittedly from the reproduced portion of the report, it is seen that when the audit pointed out that they were not eligible for the credit, the appellant had simply reversed the credit. Once such a reversal was made, and when the audit pointed out that interest was liable to be paid on 29-9-2008, the appropriate procedure to follow was to issue a show cause notice as per sub-section (2B) of Section 11A of Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For the removal of doubts, it is hereby declared that the interest under section 11AB shall be payable on the amount paid by the person under this sub-section and also on the amount of short-payment of duty, if any, as may be determined by the Central Excise Officer, but for this sub-section." Therefore, once the appellant reversed the credit and intimated to audit officers and as a result when the audit objection was communicated, the concerned jurisdictional officers also came to know about it, it was the responsibility of the jurisdictional officers to verify the correctness of the amount paid and if there was any shortfall, a notice should have been issued as contemplated under Section 11A(2B) of Central Excise Act, 1944. Duty includes ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
