Set-off of sanctioned rebate against outstanding excise dues upheld where unpaid liability continued after provisional assessment finalisation.

Sanctioned rebate was validly appropriated against outstanding central excise dues arising from finalisation of provisional assessment because the unpaid liability continued to subsist after prior recovery proceedings and encashment of the bank guarantee. The appellant failed to show that the amount adjusted was not due to the Revenue, so the rebate could be set off against the remaining duty liability. The adjustment was upheld, and the challenge to the impugned order failed.

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Issues: Whether the Revenue was justified in appropriating the sanctioned rebate towards the outstanding central excise dues arising from finalization of provisional assessment.

Analysis: The outstanding amount remained payable after finalization of the provisional assessment, and the appellant did not establish that the amount appropriated was not due to the Revenue. The prior recovery proceedings and encashment of bank guarantee left a balance liability which continued to subsist, and the rebate was adjusted against that unpaid amount.

Conclusion: The appropriation of the sanctioned rebate towards the outstanding dues was upheld. The issue was decided against the appellant and in favour of the Revenue.

Final Conclusion: The appeal failed and the impugned order sustaining the adjustment of rebate against the pending duty liability was affirmed.

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