Pre-deposit security adjustment: credit for amounts already recovered, with only the remaining balance payable in cash.

Security furnished to meet the pre-deposit requirement under the Central Excise Act was to be returned where the earlier appeal had been allowed by remand. The amount already adjusted through the RG 23A Part II account was treated as credit available to the assessee, and only the unrecovered balance remained payable in cash. The Department was therefore directed to grant credit for the amount already adjusted and pay the remaining sum in cash by the stipulated date.

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Issues: Whether the appellants were entitled to return/credit of the security furnished under Section 35F of the Central Excise Act, 1944, and whether the Department remained liable to pay the balance amount in cash.

Analysis: The appeal had earlier been allowed by way of remand, and the security furnished for compliance with the pre-deposit requirement was required to be returned. It was found that Rs. 1,77,389/- out of the deposited amount had already been paid through the RG 23A Part II account, and the appellants did not contest this position. The remaining amount represented the only sum still payable in cash.

Conclusion: The appellants were held entitled to take credit of Rs. 1,77,389/- in their RG 23A Part II account, and the Department was directed to pay the balance Rs. 40,000/- in cash by the specified date.

Final Conclusion: The miscellaneous petition was disposed of by granting the appellants credit for the amount already adjusted and directing payment of the balance amount.

Ratio Decidendi: Where security furnished under the pre-deposit requirement has already been adjusted towards duty liability, only the unrecovered balance remains payable to the appellant.

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