2002 (1) TMI 1233

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....ated 15-2-2002 for Rs. 4,78,410/- is rejected excepting to the extent of Rs. 60,000/- paid as security deposit and he sanctioned Rs. 60,000/- to be returned/refunded to the appellants. 2. The brief facts of the case are that M/s. Dinesh & Co., Ranipet are registered manufacturer of leather chemicals. They filed a refund claim on 15-2-2002 for Rs. 4,78,410/-. The said amount was paid pursuance to an offence case registered by the Head Quarters Preventive Unit, Chennai-III Commissionerate against the said unit. The Commissioner after due process of law had passed an order-in-original No. 13/98, dated 29-9-1998 demanding Rs. 12,72,815/- as duty apart from imposing penalties; the appellant preferred an appeal with CEGAT; the Hon'ble CEG....

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....an appeal. In the grounds of appeal the appellant contended that :- 3.1 The amount was paid due to the compulsion of the Assistant Commissioner of Central Excise, Head Quarters Preventive. 3.2  The case registered by the preventive was adjudicated by the Commissioner as per order-in-original No. 13/98 and he demanded Rs. 12,72,815/- towards the duty from the appellant on the ground that some quantity of goods were cleared without payment duty and the distributor was related person. 3.3  The appellant had filed an appeal against the Commissioner's order-in-original No. 13/98. The refund claim was disposed of as inadmissible based on the Commissioner's order-in-original, that the appellant can revive the claim only aft....

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.... short question that arises for consideration in this appeal is whether Section 11B is applicable to deposits made during investigation of a case. The appellants were issued with Show Cause Notice No. 8/98, dated 5-3-1998 which was adjudicated vide Order-in-Original No. 13/98, dated 29-9-1998 and were visited with demands of duty and penalty vide the impugned order. During investigation of the case proceedings, the appellants had deposited the following amounts : TR6 challan dt. 13-9-97 for Rs. 1,00,000/- -Do- dt. 17-9-97 for Rs. 1,06,332/- -Do- dt. 17-9-97 for Rs. 12,708/- -Do- dt. 17-11-97 for Rs. 2,00,000/- 6. In the adjudication proceedings, the Commissioner had adjusted the amount paid agains....