NEERAJ KUMAR Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) Present writ petition has been filed under Article 226 of the Constitution of India praying for issuance of an appropriate writ, order or direction directing the respondent to pay interest at 18% between the date of seizure and the date of refund on the cash amount of Rs. 18,00,000/- and bank drafts totalling to Rs. 1,71,327/- which had been ordered to be released by an adjudication order dated 29th August, 2006.

(2.) The relevant facts of this case are that on 29th December, 2004, cash amounting to Rs. 18,00,000/- and ten bank drafts amounting to Rs. 1,71,327/- were seized by the respondent from petitioners under Section 110 of the Customs and Excise Act, 1962 (hereinafter referred to as 'the Act ') on the belief that they were liable for confiscation under Section 121 of the Act, as made applicable to the central excise matters vide notification No. 68/63 CE dated 4th May, 1963. It is the respondent 's case that currency and bank drafts were seized as the petitioners were unable to explain their possession.

(3.) However, show cause notice was adjudicated vide Order No. 16/JC/D-1/2006 dated 29th August, 2006 by the Joint Commissioner of Central Excise, Technical, Delhi-I who ordered for release of seized cash and bank drafts to the dealer. But at the same time, Joint Commissioner directed imposition of penalty of Rs. 1,00,000/- on the dealer under Rule 25(1)(a) of the Central Excise Rules, 2002 for contravening the provisions of Sub-Rules (1) and (7) of Rule 11 of the said Rules.