INTERSCAPE Vs. COMMISSIONER OF C. EX., VISAKHAPATNAM

JUDGEMENT

(1.) THIS miscellaneous application has been filed seeking to issue directions to the Revenue to refund pre -deposit of Rs 6,00,000/ - (Rupees Six lakhs only) made by the appellant along with applicable interest under Rule 41 of CESTAT (Procedure) Rules, 1982.

(2.) THE facts of the case are that adjudicating a show cause notice, the Commissioner of Central Excise, Visakhapatnam had demanded an amount of Rs. 18,31,871/ - (Rupees Eighteen lakhs thirty one thousand eight hundred and seventy one only) and imposed equal penalty, other penalties, and interest etc. M/s. Interscape approached the Tribunal impugning the order of the Commissioner and the Tribunal passed final order dated 12 -11 -1997 setting aside the order of the Commissioner and remanding the matter for de novo adjudication. In the de novo proceedings, the Commissioner passed an order dated 16 -3 -2000 confirming a demand of Rs. 7,74,748/ - (Rupees Seven lakhs seventy four thousand seven hundred and forty eight only) and imposing penalty of Rs. 2,00,000/ - (Rupees Two lakhs only) on M/s. Interscape. Against the said order of the Commissioner, the appellant filed an appeal and this Bench, vide order dated 8 -4 -2004, again remanded the matter to the original authority with certain directions. In the adjudication proceedings, following the said remand order, the Commissioner confirmed demand of Rs. 7,40,790/ - (Rupees Seven lakhs forty thousand seven hundred and ninety only) and imposed penalty of Rs 5,00,000/ - (Rupees Five lakhs only) on the appellant. On appeal against the said order, vide Final Order No. 1133/2008 dated 24 -6 -2008 [2009 (235) E.L.T. 245 (Tribunal)] this Bench set aside the impugned order and allowed the appeal with consequential relief.

(3.) MOVING the application, the learned Counsel for the appellant submits that the appellants have since received refund of pre -deposit of Rs. 6,00,000/ - (Rupees Six lakhs only) made for hearing the appeal in the first round, on 2 -5 -2009. They were yet to receive interest on the pre -deposit. The appellants were entitled to interest for delay in refund of the pre -deposit beyond 3 months of each of the order of the Tribunal remanding the matter for de novo adjudication till the date when the same amount was ordered to be pre -deposited by the Tribunal to hear the subsequent appeal on the same issue. Interest was to be paid also for the period beyond three months of the final order allowing the appeal with consequential relief till 2 -5 -2009, when the pre -deposit was refunded following the final order. CBEC had issued circular allowing such interest on delayed refund of pre -deposit and invited our attention to the Circular dated 8 -12 -2004. The learned Counsel relies on several judicial authorities in support of the claim that the appellants are entitled to interest at the rate of 12% per annum as prayed for. It is submitted that in the following decisions, Tribunal passed orders under Rule 41 of CESTAT (Procedure) Rules, 1982 allowing interest to the appellants therein for delay in refund of pre -deposit : -