Customs, Excise and Gold Tribunal - Delhi
Kanoria Chemicals And Industries Ltd. vs Cce on 17 March, 2004
Equivalent citations: 2004(94)ECC461
ORDER P.G. Chacko, Member (J)
1. This appeal is against denial of interest on an amount of Rs. 10 lakhs refunded to the appellants. The said amount was deposited by the party under Section 35F of the Central Excise Act in Appeal No. E/2900/93 as directed by this Tribunal. That appeal was allowed as per Final Order No. A/71/98/NB dated 19.2.98 as Modified by Misc. Order No. M/271/98/NB (DB) dated 9.10.98 passed in ROM application No. 46/98/NB. As per the said order, the demand of duty and the penalty on the appellants stood set aside. The final Order dated 19.2.98 was received by the party on 12.3.98 and the Misc. Order dated 9.10.98 was received some time in November or December 1998. The amount of Rs. 10 lakhs pre-deposited in the above appeal was refunded to the appellants on 30.12.99 as per order which was passed on the refund claim dated 19.3.98. The grievance in the present appeal is that interest was not paid on the above amount.
2. Ld. counsel for the appellants submits that, in view of decisions of this Tribunal, the appellants are entitled to interest on the amount of pre-deposit from the date of expiry of three months from the date of receipt of Final Order of the Tribunal till the date of payment. Counsel has cited the Tribunal's decision in Sharda Synthetics Ltd. Vs. CCE (2003 (156) ELT 730).
3. I have heard the DR also, who has not cited any authority on the issue, better than what has been cited by the counsel.
4. The facts of the case are not in dispute. It is also not in dispute that the issue involved in this case stands squarely covered by the decision of this Tribunal in Sharda Synthetics (supra). In that case, it was held that the appellant therein was eligible for interest on the amount of pre-deposit from the date of expiry of three months from the date of receipt of relevant Final Order of the Tribunal till the date of payment of the said amount. In the instant case, the Final Order in the relevant appeal (E/2900/93) was received by the party on 12.3.98. That Final Order was amended subsequently as per Misc. Order dated 9.10.98. The amendment must date back to the date of the Final Order and, therefore, the period for payment of interest on the amount of pre-deposit in this case can be computed with reference to the date of receipt of the Final Order passed in the appeal. The refund of pre-deposit was received by the party on 30.12.99. In terms of the Tribunal's decision in Sharda Synthetics (supra), the present appellants are entitled to interest on the above amount of Rs. 10 lakhs from 12.6.98 (date after three months from the date of receipt of Final Order of the Tribunal) to 30.12.99. It is ordered accordingly. The interest shall be paid as early as possible, at any rate within two months from the date of receipt of a certified copy of this order.
5. The impugned order stands set aside and the appeal stands allowed.