Case Law Details
J K Tyre & Industries Ltd Vs Commissioner of Central Excise & Service Tax (CESTAT Bangalore)
Introduction: The case of J K Tyre & Industries Ltd vs. Commissioner of Central Excise & Service Tax, Bangalore revolves around the unilateral appropriation of an excise duty refund without providing the appellant, J K Tyre & Industries Ltd, an opportunity to present their case. The appeal challenges Order-in-Appeal No. 122/2011 passed by the Commissioner of C.E. (Appeals), Mangalore.
Background: J K Tyre & Industries Ltd, engaged in the manufacture of pneumatic tyres falling under Chapter Heading 4011 of CETA, 1985, filed a refund claim of Rs. 2,55,32,134/- following the finalization of provisional assessment for the period 01.10.2007 to 31.03.2009. The adjudicating authority accepted the refund claim, acknowledging it to be within the time limit prescribed under Section 11B of the Central Excise Act, 1944, and not subject to unjust enrichment. However, an amount of Rs. 67,15,595/- was unilaterally deducted under Section 11 of the CEA, 1944, based on a Range report indicating an outstanding due from the appellant.
Legal Arguments: The appellant, represented by their advocate, argued that the deduction of Rs. 67,15,595/- was made without issuing any notice or providing an opportunity to explain the alleged outstanding amount. They contended that the amounts mentioned in the adjudication order were erroneous, and most of the sum had already been paid by them. Specifically, they disputed the interest amount of Rs. 47,06,344/-, claiming it was not payable as the entire duty amount had been settled.
The Advocate for the Revenue failed to provide a satisfactory explanation for the inclusion of the interest amount in the deduction, relying solely on the Range Superintendent’s report mentioned in the order.
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