SHAKTI ENTERPRISES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) PETITIONER-M/s. Shakti Enterprises is before me seeking a writ of certiorari to quash Annexure-N insofar as it relates to interest on refunds. Petitioner also wants a direction to the respondents to pay to the petitioner interest at the rate of 9 per cent per annum on a sum of Rs. 3,77,992. 80 from 27-4-1994 and Rs. 2,91,193. 00 from 7-9-1994, and onasum of Rs. 87,561. 20 from 16-9-1994 upto the date of payment in terms of Section 11-BB of the central Excise Act, 1944 ("the Act" for short ).

(2.) PETITIONER, a manufacturer and packer of instant coffee, exported the instant coffee packed in cans to various countries without payment of Central excise duty. According to the petitioner, no excise duty is payable on such goods exported. Petitioner thereafter filed applications before the second respondent seeking refund of modvat credit taken on goods used in the manufacture of instant coffee packed in cans. The first claim is for a sum of rs. 23,941. 80. The second claim is for Rs. 3,77,992. 80, the third and fourth claims being for a sum of Rs. 3,52,105. 20 and Rs. 87,561. 20 respectively. Second respondent rejected three claims out of four refund claims i. e. , in respect of claims for Rs. 23,941. 80, Rs. 3,77,992. 80 and Rs. 87,561. 20. Aggrieved by the same, petitioner moved the Assistant Commissioner of central Excise, who rejected the same by his order dated 26-4-1996 (Annexure-B ). Aggrieved by the said rejections, an appeal was filed and the appellate Authority in terms of his order dated 5-8-1999 (Annexure-C)allowed the appeal and remanded the matter to the Assistant Commissioner for de novo examination and for a decision on merits in accordance with law. After remand, the Assistant Commissioner ordered refund in respect of three items in terms of Annexure-D. In respect of the fourth claim is concerned, the application was considered and refund was ordered in terms of Annexure-H.

(3.) AFTER refund, petitioner by its letters at Annexures-J, K, L and M sought for interest in terms of Section 11-BB of the Act. Respondent 1 in terms of annexure-N has rejected the claim of interest. This order is challenged in this petition.