Custom, Excise & Service Tax Tribunal
M/S. Madura Coats P. Ltd vs Cce, Tirunelveli on 28 February, 2018
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
Appeal Nos. E/52 & 53/2011
(Arising out of Order-in-Appeal No.507 & 508/2010 dated 27.10.2010 passed by the Commissioner of Central Excise (Appeals), Madurai)
M/s. Madura Coats P. Ltd. Appellant
Vs.
CCE, Tirunelveli Respondent
Appearance Shri S.S. Thakur, Authorized Rep. for the Appellant Shri R. Subramanian, AC (AR) for the Respondent CORAM Honble Ms. Sulekha Beevi C.S., Member (Judicial) Honble Shri Madhu Mohan Damodhar, Member (Technical) Date of Hearing / Decision: 28.02.2018 Final Order Nos. 40514-40515 / 2018 Per Bench Brief facts of the case are that the appellants were denied exemption claimed on cotton sewing threads made out of duty paid cotton yarn in terms of Notification No.435/86-CE dated 6.10.1986. Pursuant to such denial, the appellants had deposited Rs.18,96,374.81. Thereafter, on realizing that they are eligible for the benefit of exemption, the appellant filed Writ Petition No.22276/1993 before the Honble High Court of Madras praying for a direction to return the amount deposited along with interest. The said writ petition was allowed on 13.9.2008 and the writ appeals were also in favour of the appellant. On 26.6.2009, appellant requested the department to return the amount with interest @ 18%. Order-in-Original dated 13.10.2009 and 6.11.2009 were passed wherein the refund amount of Rs.14,33,202/- was sanctioned with interest of Rs.24,966/- being interest @ 6% for the period beyond three months from the date of receipt of application i.e. 29.6.2009. On another refund application, the refund sanctioning authority passed Order-in-Original dated 19.11.2009 sanctioning refund of Rs.4,63,172/- but denied interest. Against such order of denial of interest, the appellant filed appeal before Commissioner (Appeals) and vide Order-in-Appeal dated 27.10.2010, the Commissioner (Appeals) dismissed the appeal. Simultaneously, the appellant had filed contempt petition before the Honble High Court of Madras and vide order dated 28.3.201, the Honble High Court of Madras dismissed the contempt petition. Against this the appellant filed Civil Appeal No. 4339/2014 before the Honble Supreme Court and vide judgment dated 2.4.2014, the Honble Supreme Court directed to pay interest within a period of six weeks from the date of order. Pursuant to the judgment of the Honble Supreme Court, the Assistant Commissioner, Tuticorin vide Order-in-Original dated 9.5.2014 sanctioned interest of Rs.16,38,182/- and vide separate Order-in-Original dated 12.5.2014, the Assistant Commissioner, Tirunelveli sanctioned interest of Rs.52,74,505/-.
2. At the time of hearing, the representative of the appellant-company Shri S.S. Thakur submitted hat they have received the interest which was the issue for consideration in the present appeals. He also submitted that the department has filed clarification petition before the Honble High Court of Madras in Writ Appeal No. 20/2001 which is still pending.
3. The ld. AR Shri R. Subramanian submitted that the appellant have already received the interest as per the judgment of the Honble Supreme Court and therefore the present appeals have become infructuous.
4. Heard both sides.
5. We find merit in the argument that the present appeals have become infructuous. The appellant has already received the interest which they claimed on the refund sanctioned to them. In view thereof, the appeals are dismissed as infructuous.
(Operative portion of the order was
pronounced in open court)
(Madhu Mohan Damodhar) (Sulekha Beevi C.S.)
Member (Technical) Member (Judicial)
Rex
3