CCE, CHANDIGARH Vs. M/S. SURYA PHARMACEUTICAL LTD.

JUDGEMENT

(1.) THE facts leading to this appeal filed by the Revenue are, in brief, as under:

(2.) HEARD both the sides.

(3.) SHRI S.K.Bhaskar, learned DR pleaded that in this case initially the goods had been cleared for export under bond without payment of duty under ARE -I but since the merchant exporter to whom the goods were to be exported, did not take the delivery on account of a case having been booked against him by the DRI, the goods were returned to the factory on payment of duty; that in such a situation, the provisions of para 2(v) of Notification No.42/01 -CE(NT) would be applicable and hence in addition to the duty on the goods as specified in ARE -I, the interest on duty at the specified rate from the date of removal for export till date of payment of duty would be required to be paid; that the goods returned to the factory, were re -exported, is not relevant and that in view of this, the impugned order permitting the refund of interest is not correct.