TaxTMI 
TaxTMI 
2026 (9) TMI 905
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....red before him unsuccessfully by the Appellant is assailed in this appeal. 2. Fact of the case would go to reveal that Appellant sought for refund of Rs.14,28,537/- and Rs.3,67,588/- against imports effected through 5 Bills of Entries between the period November, 2016 and March, 2017 and 8 Bills of Entries during the period from October, 2016 to November, 2016 respectively. Assistant Commissioner of Customs, JNCH, Nhava Sheva-III vide Order-in-Original No. 238 & 239/2020-21/AM (I) NS-III sanctioned the refund but appropriated the amount towards duty drawback demand confirmed vide Order No. AC/JD/2850/2017-18/DBK(XOS)/ACC dated 27.03.2018. Appellant preferred an appeal unsuccessfully before the Commissioner (Appeals) and aggrieved by the ....
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....been clearly held that such adjustment can be done when the demand has reached finality and should never be invoked at the initial stage since it was in the nature of a mere claim that got confirmed through an appealable order. His further submission on the issue is that no such adjustment can be done without hearing the Appellant on the said issue by the Adjudicating Authority and therefore, Appellant is also entitled for interest on delayed refund of tax. 4. Per contra, learned Authorised Representative Mr. C.S. Vinod argued in favour of the reasoning and rationality of the order passed by the Commissioner (Appeals) and took this Bench through para 8 of his order to justify that no favourable order was passed by the Revisional Authorit....
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....irmation of a demand, no finality has been reached. To put in other words, those demands cannot be called as arrears. There is a possibility that these demands could be set aside by the Commissioner (A) or the Tribunal or any other judicial forum. That is why large number of decisions hold that refund cannot be adjusted against the demands which are sub-judice. In the present case, the action of the authorities in adjusting the refund is against the legal provisions. Section 11 should be invoked only when the demands have reached finality and should not be invoked even at the initial stage. Section 11BB provides interest for delayed refunds. This is squarely applicable to the present case. The Commissioner (A) has not at all given any reaso....