Page 263 - ELT_1st September 2020_Vol 373_Part 5

2020 ] COMMR. OF C. EX. & S.T., JAIPUR-I v. RAJASTHAN EXPLOSIVES & CHEMICALS LTD. 701

REPRESENTED BY : Shri O.P. Bisht, Authorised Representative, for the
Appellant.
Shri Arjun Garg, Advocate, for the Respondent.
[Order per : Justice Dilip Gupta, President]. - This Appeal has been
filed by the Department to assail the order dated 27 November, 2018 passed by
the Commissioner (Appeals), Central Excise and Central Goods and Services
Tax, Jaipur [The Commissioner (Appeals)]. The Appeal was filed by the re-
spondent Rajasthan Explosives and Chemicals Ltd. [Rajasthan Explosives] before
the Commissioner (Appeals) to assail the order dated 11 April, 2018 passed by
the Assistant Commissioner, CGST Division-F, Bharatpur [The Assistant Com-
missioner]. The Assistant Commissioner had sanctioned refund claim of Rs.
1,23,72,567/- to the Respondent under Section 11B of Central Excise Act, 1944
[Excise Act], but adjusted the same towards the confirmed demands. The Com-
missioner (Appeals) held that the Assistant Commissioner wrongly adjusted this
sanctioned refund amount from confirmed demands and also directed for pay-
ment of interest for the period starting from 19 March, 2017 (expiry of three
months from the date of the order dated 20 December, 2016 passed by the Tribu-
nal) till the date of payment of refund amount.
2. It transpires from the records that a show cause notice dated 9 April,
1998 was issued to Rajasthan Explosives alleging that it had not paid Central Ex-
cise duty amounting to Rs. 51,51,960/- on the goods cleared during the periods
1995-1996 to 1997-1998. The payment was confirmed and in the Appeal filed be-
fore the Tribunal by Rajasthan Explosives an amount of Rs. 1,23,72,567/- was
directed to be deposited as a condition for filing of the Appeal. The Appeal was
ultimately allowed by the Tribunal by order dated 20 December, 2016. Conse-
quently, Rajasthan Explosives filed a refund claim for Rs. 1,23,72,567/- before the
Assistant Commissioner who by order dated 11 April, 2018 held that the refund
claim was admissible but directed that it shall be adjusted against the confirmed
demands. It is against this order that Rajasthan Explosives had filed an Appeal
before the Commissioner (Appeals) who allowed the Appeal by order dated 27
November, 2018.
3. The records indicate that the respondent company was promoted by
Rajasthan State Industrial Development and Investment Corporation Ltd. and
IDL. IDL disposed of its shareholding in the company in favour of Shri Rajesh
Jain, the then promoter. The Company filed a reference in the BIFR and was de-
clared “sick” by BIFR in 1992. A scheme for the rehabilitation of the sick indus-
trial company was sanctioned by the BIFR on 3 May, 1994 by an order made un-
der Section 18(4) read with Section 19(3) of the Sick Industrial Companies (Spe-
cial Provisions) Act, 1985 [SICA]. The scheme was modified on 10 May, 1996.
However, the modified scheme also failed to revive the company. Thereafter,
offer was received through advertisement by the BIFR for taking over of the
company. A fresh scheme, by way of Change of Management of the company
through induction of a new management under Captain K.S. Solanki was sanc-
tioned by the BIFR on 22 November, 2000. The sanctioned Scheme, inter alia, en-
visaged payment of dues of Financial Institutions and Restructuring of Dues of
Bank and payment to various statutory Authorities, including the Central Excise
Department. The scheme sanctioned by the Board by order dated 22 November,
2000 also fixed the cut-off date as 31 March, 2000. The relevant portion of the
sanctioned scheme is reproduced hereunder :-

EXCISE LAW TIMES  1st September 2020  263