Refund Ordered: Petitioner to Receive Rs. 5,26,662 with Interest; Case Remanded Under Sabka Vishwas Scheme, No Costs Involved.

The Writ Petition was allowed, directing the respondents to refund the appropriated amount of Rs. 5,26,662/- with applicable interest under Section 11B of the Central Excise Act, 1944, to the petitioner. The CESTAT set aside the liabilities under Orders in Original No. 1669 of 2009 and No. 8 of 2011-ST, remanding the case back to the Original Authority. The petitioner settled the demand under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, and a discharge certificate was issued. Consequently, the appropriation pursuant to the order was set aside, and no costs were awarded.

---

---

Issues: Challenge to order in appeal regarding rebate claim appropriation towards tax liability, rejection of appeal, settlement under Sabka Vishwas Scheme, refund of appropriated amount.

Analysis:
The petitioner challenged the Order in Appeal No. 77/2014 dated 22.08.2014, where the third respondent rejected the petitioner's appeal against Order in Original No.11/2014-R dated 12.02.2014. The rebate claim of Rs. 6,41,416/- made by the petitioner was scrutinized and Rs. 5,78,634/- was sanctioned under Section 11B of the Central Excise Act, 1944. However, this amount was appropriated towards the petitioner's tax liability under previous orders. The Tribunal had set aside the Orders in Original, leading to the petitioner settling the dispute under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The petitioner sought direction for the refund of Rs. 5,26,662/- appropriated towards the liability confirmed under Order in Original No. 1669 of 2009.

Regarding the appropriation of Rs. 51,972/- towards a tax liability of Rs. 1,63,778/- under Order in Original No.8 of 2011-ST, the petitioner's appeal before the Appellate Commissioner was rejected, but succeeded at the CESTAT level. The Tribunal set aside both the liabilities under Order in Original No.1669 of 2009 and Order in Original No.8 of 2011-ST Adjn. The Tribunal remanded the case back to the Original Authority for the demand confirmed under Order in Original No.1669 of 2009. The petitioner settled this demand under the SVLDRS Scheme, 2019, and a discharge certificate was issued. Consequently, the appropriation made pursuant to the order needed to be set aside.

In conclusion, the Writ Petition was allowed, and the respondents were directed to refund the sanctioned amount with applicable interest under Section 11(b) of the Central Excise Act, 1944 to the petitioner. No costs were awarded in this matter.

---