Tribunal remands case for refund & duty adjustment. Commissioner's decision upheld. Review & adjust excess duty.

The Tribunal remanded the case back to the Adjudicating Authority for appropriate action regarding the refund and adjustment of excess duty. The Commissioner (Appeals) in Nagpur allowed the adjustment of differential duty against the excess amount, emphasizing the need for refund following the due process of law. The Tribunal set aside the initial decision and directed the Adjudicating Authority to review the refund due to the appellant and adjust any excess duty accordingly, ensuring consistency with the Commissioner's findings in Nagpur.

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Issues:
Challenge to rejection of plea for appropriation of refund against demand in different unit.

Analysis:
The appellant challenged the rejection of its plea for the appropriation of a refund due to it in respect of one unit against the demand in another unit. The undisputed facts revealed that the appellant opted for provisional assessments and made advance payments towards expected differential duty for all three units. The appellant claimed an excess payment in its Poonamallee Unit, seeking refund under the CGST Act, 2017. However, the Adjudicating Authority did not appropriate as requested but proceeded to demand duty for the Ambattur unit. The appellant appealed the decision after an unsuccessful attempt before the Commissioner of GST and Central Excise. Both sides presented their arguments, and various case laws were referred to during the proceedings.

In the adjudication, it was noted that the appellant's request for appropriation was made in a letter dated 09.10.2017, and there was a communication stating that no refund claim was filed. The Commissioner (Appeals) in Nagpur allowed the adjustment of differential duty of the Butibori Unit against the excess amount of the Poonamallee Unit. The order highlighted the change in law with the introduction of the CGST Act, 2017. The appellant's excess duty, which remained with the Revenue, needed to be refunded following the due process of law. The Tribunal set aside the impugned order and remanded the case to the Adjudicating Authority to review the refund due to the appellant and adjust any excess duty of the Poonamallee Unit towards the duty and interest liability of the unit in appeal, aligning with the findings of the Commissioner (Appeals) in Nagpur to ensure consistency.

The Tribunal disposed of the appeal by remanding the case back to the Adjudicating Authority for appropriate action regarding the refund and adjustment of excess duty, as per the findings and discussions of the Commissioner (Appeals) in Nagpur.

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