Adjustment of Rebate Against Unfinalized Demand Not Permissible: CESTAT

CESTAT held that the adjustment of rebate against an unfinalized demand is not permissible. The tribunal clarified that rebates or refunds can typically be adjusted against confirmed or finalized demands but not against demands that are still under dispute or have not yet attained finality through adjudication or appeal processes. This ruling ensures that there is a clear and established liability before any adjustments of rebates can be made, maintaining the integrity of the revenue collection and dispute resolution mechanisms under the relevant tax laws.