Case Law Details
KEC International Limited Vs Commissioner (CESTAT Delhi)
From a plain reading of the provisions of Section 11(1) of Central Excise Act, I find that the Central Excise Officer is empowered to adjust only the unpaid adjudicated dues. As Section 11(1) also empowers the Central Excise Officer to recover the dues, even by way of attachment and sale of excisable goods, and if the same are not recovered, is also empower to prepare a certificate duly signed by him specifying the amount due from the person liable to pay, and send it to the Collector who on receipt of such certificate, shall proceed to recover the amount specified in the certificate as if it were an arrear of land Revenue.
Thus, such extra ordinary power to recover are only available for recovery of adjudicated dues, or admitted dues as per return, if the same are unpaid. Under such special power under Section 11(1), the Central Excise officer cannot recover the un- adjudicated dues, as has been done in the present case.
Accordingly, in view of my finding, I hold that the amount adjusted Rs. 8,12,603/-, being by way of un-adjudicated dues of interest, is bad. Accordingly, the appeal is allowed and the impugned order stand modified. Further, the Adjudicating Authority is directed to grant the refund of the balance rebate amount of Rs.8,12,603/- to the appellant, with interest as per Rules, within a period of sixty days from the date of receipt of a copy of this order.
FULL TEXT OF THE CESTAT DELHI ORDER
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