NAV BHARAT IMPEX Vs. UNION OF INDIA

JUDGEMENT

(1.) This is a case which shows as to how the Central Excise Department can harass a manufacturer in the payment of rebate and thereafter in the payment of statutory interest on the delayed payment of rebate.

(2.) The petitioner seeks the quashing of the order-in-original bearing No. R-250/REF/08-09, dated 30-3-2009 to the extent the said order rejects the claim of interest on delayed sanction of rebate to the petitioner on the ground that the same is illegal and contrary to the order in appeal No. 80 to 144/CE/DLH/2008 passed by the Commissioner (Appeals), Central Excise, Delhi-I on 24-6-2008. The petitioner also seeks a writ of mandamus or any other appropriate writ or direction directing the respondent No. 4 (Assistant Commissioner Central Excise) to comply with the said order in appeal dated 24-6-2008 and to grant the statutory interest under Section 11BB of the Central Excise Act, 1944 on the delayed payment of rebate claims amounting to Rs 97,02,895/-. The petitioner has also prayed for costs.

(3.) We need not go into the intricacies of the issues involved on merits since we are only concerned with the question of the interest claim of Rs. 97,02,895/- which has been rejected by the Assistant Commissioner by virtue of the impugned order-in-original. The relevant facts for this purpose are that by an order dated 24-6-2008 the Commissioner (Appeals), Central Excise Delhi-I had allowed the appeals of the petitioner and directed the adjudicating authority to sanction the rebate and interest on the total amount of rebate at the applicable rate prevailing during the relevant period from the date immediately following the expiry of three months from the date of receipt of the application for rebate till the date of actual refund of duty paid on the goods exported.