CONTINENTAL PETROLEUM LTD. Vs. CC

JUDGEMENT

(1.) THIS appeal is directed against the order in appeal dated 24.12.2005, wherein the Commissioner (Appeals) upheld the order in original granting the interest to the appellant.

(2.) THE brief facts of the case are : Appellants imported waste oil and classified the same under Heading No. 28.23 of CTA. The said classification was not accepted by the Assistant Collector and he classified the same under 3403 of CTA and directed the appellants to pay appropriate duty and CVD. On appeal from this order in original the Commissioner (Appeals) upheld the said adjudication order. The appellants preferred a stay application and appeal against the said order in appeal to the Tribunal. Tribunal while disposing the stay application directed the appellant to pre -deposit an amount of Rs. 22,30,000/ - which was complied by the appellants. The appellant's appeal was allowed by the Tribunal vide Order No. 56 -57/2000 -C dated 21.1.2000, On succeeding in the appeal the appellants preferred a refund claim for the amount of pre -deposit made by them along with interest from the date of pre -deposit. The adjudicating authority granted the refund of the amount of Rs. 22.30.000/ - to the appellant vide order dated 23.7.2002 but rejected the claim of interest. Against this order of rejection of interest the appellants filed an appeal before the Commissioner (Appeals) who vide his order dated 9.7.2003 accepted the contention of the appellants and allowed the appeal, but directed the adjudicating authority to grant interest for a limited period and the interest as provided under Section 27A of the Customs Act 1962. The adjudicating authority vide his order in original dated 13.8.2003, following the direction of the Commissioner (Appeals) order dated 9.7.2003 granted an interest of Rs. 339002/ - at the rate as was prevalent during the time and took the date of filing of the refund claim as the date from which the interest is payable. This was not acceptable to the appellant and he preferred an appeal to the Commissioner (Appeals) who in his order in appeal dated 24.12.2003, upheld order in original dated 13.8.2003 as being correct relying upon the provisions of Section 27A of the Customs Act 1962. This appeal is directed against this order.

(3.) THE learned Advocate submits that his grievance is in respect of the period for which refund of interest is paid and the rate of interest. He submits that the Board's Circular dated 8.12.2004 is applicable in this case and the interest has to be granted from date of final disposal of the appeal by the Tribunal i.e. from 21.1.2000 and the rate of interest should be 12% as is approved by the Honble Supreme Court in the case of CCE, Hyderabad v. ITC Ltd. 2005 (179) ELT 15 (SC).