Pre-notice excise deposit was adjustable against confirmed duty demand, and no refund arose without stay of the order.

An amount deposited before issue of the show cause notice during central excise proceedings was not refundable once the duty demand was adjudicated and confirmed. Because the deposit was not shown to be unconditional, it could be adjusted against the confirmed liability. The pendency of a challenge before a higher court did not create an immediate right to refund in the absence of any stay of the Tribunal's order. Refund could arise only if the confirmed duty demand was ultimately set aside.

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Issues: Whether the amount deposited by the assessee before issuance of the show cause notice was refundable when the duty demand had been adjudicated and confirmed against the assessee.

Analysis: The amount was deposited during proceedings relating to evasion of central excise duty and was not shown to have been paid unconditionally. The show cause notice was adjudicated, the duty demand was affirmed, and the demand stood upheld by the Tribunal as well. In these circumstances, the deposited amount was liable to be adjusted against the confirmed duty liability. The pendency of a challenge before a higher court did not create an immediate right to refund in the absence of any stay of the Tribunal's order.

Conclusion: The assessee was not entitled to refund of the amount at that stage; the claim could arise only if the confirmed duty demand was ultimately set aside.

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