SHERWANI INDUSTRIAL SYNDICATE Vs. CCE

JUDGEMENT

(1.) The appellants had made pre -deposits of Rs. 35 lakhs and Rs. 7 lakhs under Section 35F of the Central Excise Act in two appeals which they had preferred to this Tribunal against certain demands of duty affirmed by the Commissioner (Appeals). When those appeals succeeded, the appellants filed an application in July 2000 for refund of the above amounts totalling to Rs. 42 lacs. The jurisdictional Assistant Commissioner sanctioned the refund but ordered that the amount be adjusted, under Section 11 of the Central Excise Act, to0wards certain arreras of Central Excise duty recovery whereof was pending against the party. Against this direction for set -off of the refund claim against the demand of Central Excise duty, the party preferred an appeal to the Commissioner (Appeals) and the latter held in favour of the appellants and directed refund of the aforesaid amount (Rs. 42 lacs) to them. The Commissioner (Appeals) however, did not accede to the appellant's claim of interest on the amount.

(2.) Another refund claim dated 21.2.97 for an amount of Rs. 44,08,420/ - had also been filed with the department by the same party. This claim had arisen from an order of the Hon'ble Supreme Court holding that the cost of secondary packing was not includible in the assessable value of the goods cleared by the party during the relevant period. The claim was rejected by the original authority on the ground on unjust enrichment. Against the order of that authority, the party filed an appeal with the Commissioner (Appeals) and the latter allowed cash refund of the amount to the appellants, holding that the incidence of duty had not been passed on to customer. However, in this case also, the assessee's claim for interest on the duty amount was not allowed.

(3.) The present appeal has been filed by the assessee, aggrieved only by the denial of interest.