NORTHERN MINERALS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal is directed against order -in -appeal dated 5.7.04 which upheld the order in original rejecting the refund claim of the appellants on the ground that appellants are not eligible for refund under Section 11AB and that he has paid the duty and interest correctly.

(2.) RELEVANT facts that arise for consideration are that the appellants had sought provisional assessment of goods for the financial year 2001 -2002. The said provisional assessment were finalized by the authorities and that the appellant paid the differential duty to the authorities on 26.06.2002. While making the differential duty payment, the appellants calculated the interest payable at the rate of 24% on such differential duty and deposited the interest. Subsequently, the appellants filed the refund claim for an amount of Rs. 3,26,0571/ - During the proceedings before the lower authorities the appellants conceded that they are liable to pay the interest at the rate of 24% upto 13.5.02, but from 13.5.02 to 13.6.2002 the prescribed rate of interest is only 15% and hence they claimed refund of differential amount of Rs. 1,20,809/ - from the authorities. Both the lower authorities held against the appellant. Hence this appeal.

(3.) CONSIDERED the submissions made at length by both the sides and perused the records. It is not disputed that interest is payable by the appellants on the differential duty confirmed against him after the final assessment of the clearance made by them under provisional assessment. Interest payable during the relevant period was 24% per annum but on 13.5,2002, notification No. 19/02 -CE (NT) was issued for effective rate of interest under Section 11AB of the Central Excise Act, 1944. It is the submissions of the advocate for the appellants that since the Statute itself mandates for recovery of interest at the rate of 15% from 13.5.02 the department could not have demanded the excess interest from him. I find force in the appellants contention that if the Statue itself says that the interest to be charged on the duty payable/ short paid by the assessee is 15%, then the department cannot sit with excess amount of interest paid by the appellants may be due to oversight or due to mistake.