C.C. EX. Vs. MANIBHAI AND BROTHERS

JUDGEMENT

(1.) THE refund claim for Rs. 84,434/ - filed by the respondents was sanctioned by the Assistant Commissioner after due verification of the claim. Subsequently a show cause notice was issued for recovery of the amount sanctioned by way of issue of show cause notice. The refund claim has been sanctioned on 22/06/2006 and show cause notice was issued on 06/11/2006. The lower authorities have dropped the proposal for recovery of the refund amount on the ground that the original order sanctioning the refund on 22/06/2006 had attained finality since no appeal has been filed against that order. Hence the revenue is in appeal.

(2.) 1. The learned SDR on behalf of the revenue submits that the stand taken by the Commissioner (Appeals) that the order sanctioning the refund has attained finality and therefore no show cause notice could have been issued is not correct in view of the provision under Section 11A of Central Excise Act 1944 which gives the department a right to issue a show cause notice in a case where an erroneous refund has been granted to an assessee.