INDIAN THERMOPLASTICS (P) LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) IN this application, by order dated 10 -6 -2003 we had directed the respondent to return the entire amount of Rs. 7,15,350/ - to the applicant with interest at 12% within two weeks from the date of receipt of a copy of the order. It was the case of the applicant that pursuant to the final order passed by this Tribunal on 20 -6 -96 reported as Indian Thermoplastic Pvt. Ltd. v. Collector of Customs, Kandla, 1996 (87) E.L.T. 536 they are entitled to return of the following amounts :

(2.) THE Commissioner has filed an affidavit dated 15 -8 -2003 wherein he has stated that pursuant to the order dated 10 -6 -2003 the entire amount of Rs. 7,40,350 has been paid with interest amounting to Rs. 5,29,359. Since there was a mistake in calculating interest in respect of one day a further amount of Rs. 235 was also sanctioned under a cheque dated 14 -8 -2003. He submits that interest of Rs. 5,29,594 was paid on Rs. 7,15,350 calculated at the rate of 12% from 30 -4 -97 to 30 -6 -2003. In computing the period he made reference to the provisions of Section 27A of the Customs Act, 1962 where it is provided that if any duty ordered to be refunded under Sub -section (2) of Section 27 to an applicant is not refunded within three months from the date of receipt of application under Sub -section (1) of that section, interest shall be paid to the applicant from the date immediately after the expiry of three months from the date of such application till the date of refund of such duty.

(3.) LEARNED Counsel would submit that the applicant is entitled to interest from the date of deposit or, at any rate, from 10 -6 -2003, namely, the date of final order passed by this Tribunal. In similar miscellaneous application claiming refund of amount due to the assessee pursuant to the final order passed by this Tribunal we have directed payment of interest at 12% for a period from the date of expiry of three months from the date of receipt of the final order of the Tribunal till the date of payment [Sheela Foam Pvt. Ltd. v. CCE, Noida, 2003 (154) E.L.T. 522 and Sharda Synthetics Ltd. v. CCE, Mumbai, 2003 (156) E.L.T. 730]. Computation of period as above will be in consonance with the principle in the provisions contained under Section 11BB of the Central Excise Act, 1944 and Section 27A of the Customs Act, 1962. We therefore hold that no further amount is liable to be paid to the applicant by way of interest.