CCE Vs. POLYPLEX CORPORATION LTD.

JUDGEMENT

(1.) THE Revenue filed this appeal against the order of the Commissioner (Appeals), whereby, it has been directed that the respondents are entitled for interest from the date of the Tribunal's order.

(2.) THE relevant facts of the case, in brief, are that the show cause notices dated 22.7.99 and 29.7.99 were issued proposing to disallow Modvat credit of Rs. 3,66,328/ - on the ground that the credit is not available to the respondents in respect of the goods received back by them from their customers. Vide Order -in -Original dated 16.12.99, the Dy. Commissioner disallowed the credit of Rs. 3,66,328 - and imposed penalty of equal amount along with interest. During the year 1999 -2000, the respondents tiled refunds/rebate claims before the Dy. Commissioner, Kanpur in other cases. By Adjudication Orders dated 14.3.2000, 8.10.2000 and 21.11.2000, the Dy. Commissioner allowed the refund claims but the entire amount of Rs. 8,27,190/ - was adjusted against the demand as confirmed by the Adjudication Order dated 16.12.99. Subsequently, the Commissioner (Appeals) vide order -in -appeal dated 22.2.2002 set aside the adjudication order dated 16.12.99. Then, the respondents filed refund claims of Rs. 8,27,190/ - on 4.3.2002 in pursuance of the order of the Commissioner (Appeals). The Revenue filed an appeal before the Tribunal against the order -in -appeal dated 22.2.2002, which was rejected by the Tribunal vide Final Order dated 11.6.2002. In spite of the order of the Tribunal, the Revenue tailed to refund the amount to the respondents. The respondents filed a writ application before the Hon'ble High Court of Judicature at Allahabad. The Hon'ble High Court by order dated 11.11.2003 in Civil Writ Petition No. 279 of 2003 directed the Revenue to refund the amount claimed by the respondents with interest as provided under Section 11BB of the Central Excise Act within a period of one month of the production of the certified copy of the order before the concerned authority. In compliance of the order of the Hon'ble High Court, the Dy. Commissioner, Central Excise, ordered refund of Rs. 8,27,190/ - and payment of interest of Rs. 82,719/ -. It has been observed by the Dy. Commissioner that for payment of interest, the relevant date should be reckoned in terms of Section 11 BB of the Central Excise Act, 1944 after three months from that date of the order of the Tribunal i.e. 11.9.2002. The respondent filed an appeal before the Commissioner (Appeals) against payment of interest. In the impugned order, the Commissioner (appeals) held that the respondents are entitled for interest from the date of the order of the Tribunal.

(3.) THE ld. DR on behalf of the Revenue submits that the refund is arising out of the Final Order of the Tribunal and, therefore, the adjudicating authority rightly ordered for payment of interest after three months of the Tribunal's order as provided under Section 11 BB of the Central Excise Act, 1944. He further submits that the Commissioner (Appeals) relied upon the decision of the Hon'ble High Court. Calcutta in the case of Eastern Coils Private Ltd. v. Commissioner , which is not applicable herein. He relied upon the Larger Bench decision of the Tribunal in the case of Indian Thermoplastics (P) Ltd. .