Tribunal upholds adjustment of confirmed demand against sanctioned refund

The Tribunal upheld the adjustment of confirmed demand against a sanctioned refund, citing Section 11 of the Act allowing deductions from amounts due to the assessee. The appellant's argument against the adjustment was dismissed, as the Tribunal found the adjustment permissible based on a Division Bench decision and absence of a stay order from the High Court. The appeal was ultimately dismissed, affirming the impugned order.

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Issues:
Adjustment of confirmed demand against sanctioned refund.

Analysis:
The appellant appealed against the impugned order where the Commissioner (Appeals) upheld the adjustment of confirmed demand against the sanctioned refund. The appellant argued that the refund was sanctioned by the adjudicating authority, but an amount was adjusted against it. The appellant contended that such an adjustment cannot be made, citing specific decisions of the Tribunal. On the other hand, the Revenue justified the adjustment by referring to Section 11, allowing the deduction of any sum payable to the Central Government from the amount due to the assessee. The Revenue relied on a Division Bench decision supporting such adjustments.

In this case, the Tribunal noted that the demand adjusted against the refund was upheld, and the appellants had a pending reference before the High Court without any stay order on the Tribunal's decision. Section 11 of the Act empowers the officer to deduct any amount payable to the assessee from money owed by the person from whom the sum is recoverable. The Tribunal, considering the provisions of Section 11 and the precedent set by the Division Bench in a previous case, held that the adjustment could be made. Consequently, based on the Division Bench's decision and the absence of any stay order from the High Court, the Tribunal found no fault in the impugned order and dismissed the appeal.

The judgment was delivered and pronounced in the open court on 18-1-2007.

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