Natural justice bars adjustment of refund against excise dues without notice and hearing; matter remanded for fresh consideration.

Refund sanctioned to the assessee could not be adjusted against alleged excise dues without prior notice and an opportunity to be heard. The adjustment was therefore unsustainable on principles of natural justice, and the issue required fresh examination by the adjudicating authority. The matter was remanded for reconsideration of the adjustment after granting the assessee a hearing.

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Issues: Whether the refund sanctioned to the appellants could be adjusted against alleged excise dues without prior notice and hearing, and whether the adjustment required reconsideration.

Analysis: The amount of refund was adjusted against excise dues without putting the appellants to notice or affording them an opportunity to explain their stand. In these circumstances, the adjustment could not be sustained as made. The question of adjustment therefore required fresh examination by the adjudicating authority after hearing the appellants.

Conclusion: The matter was remanded for fresh decision on adjustment of the dues after granting an opportunity of hearing to the appellants.

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