Refund adjustment against confirmed excise demand upheld where Section 11 permits deduction of recoverable sums.

Refund sanctioned to an assessee may be adjusted against an outstanding confirmed excise demand where Section 11 of the Central Excise Act authorises deduction of sums recoverable from money owing to that person and under the officer's control. Because the duty demand was admitted to be recoverable, the adjustment of the refund against that demand was valid. Authorities cited by the assessee were distinguished as inapplicable since they did not address adjustment of refund amounts under the same recovery provision or its corresponding provisions.

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Issues: Whether the refund sanctioned to the assessee could be adjusted against an outstanding confirmed central excise demand under Section 11 of the Central Excise Act, 1944.

Analysis: Section 11 of the Central Excise Act, 1944 authorises deduction of sums recoverable from any money owing to the person from whom such sums are due and under the control of the officer empowered to levy the duty. Since a confirmed demand of duty was admittedly recoverable from the assessee, the refund sanctioned in its favour was liable to be adjusted against that demand. The authorities cited by the assessee were held to be inapplicable because they did not concern adjustment of refund amounts under Section 11 or its corresponding provisions.

Conclusion: The adjustment of the refund against the confirmed demand was held to be valid and the assessee's challenge failed.

Ratio Decidendi: Refund amounts payable to an assessee may be adjusted against an outstanding confirmed excise demand where Section 11 of the Central Excise Act, 1944 authorises such deduction.

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