2017 (7) TMI 323

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..... 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 under Chapter 30 of the Central Excise Tariff Act, 1985. The said goods are cle .....

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..... ed Commissioner (Appeals) vide order dated 6.6.2008 in denying the cash rebate of Rs. 64,45,681/- to the appellant. Further, it has also been held that upon return of cash rebate already paid by the Department, the appellant would be eligible for credit of the said amount in their cenvat credit account. The order dated 6.6.2008 of the learned Commissioner (Appeals) was challenged by the appellant .....

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..... 08.2011. Hence, the present appeal is before the Tribunal. 3. The learned Advocate appearing for the appellant submits that without issuance of show cause notice, the amount in question cannot be recovered or realized from the rebate amount, which was legally sanctioned by the authorities. In support of such stand, the learned Advocate has relied on the decision of this Tribunal in the case of St .....

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..... . Out of the sanctioned rebate amount, an amount of Rs. 26,76,321/- was adjusted by the Asstt. Commissioner towards interest liability, relatable to earlier erroneous refund. Such action on the part of the Department, does not appears to be is in conformity with the statutory provisions, inasmuch as, for recovery of the interest amount, no show cause notice was issued by the Department, as provide .....

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..... ourt in the case of CPS Textiles (P) Ltd. (supra) relied upon by the Revenue in the cross objection, is distinguishable from the facts of the present case, inasmuch as, the payment of interest in the said case was under the duty drawback scheme, where recovery of interest is specifically provided. Thus, for recovery of interest in such eventuality, no invoice was required to be issued. 9. In view .....

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