MAFATLAL INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Both these petitions are filed by the same petitioner company, but in respect of its two different units, one at Navsari and the other at Nadiad. The petitions raise common questions and have been argued together.

(2.) 1.In Special Civil Application No. 1409 of 1998, the petitioner, has sought a direction on the respondents not to recover any further amount and has challenged the impugned letters dated 15.12.1997 and 12.2.1998 at Annexures "J" and "L" to the petition, demanding payment of a sum of Rs. 1,37,27,275.22, which according to the respondents, the petitioner's unit was liable to pay as on 2.9.1997, on the ground that interest was payable by the petitioner at the rate of 20% per annum from 7.8.1995, i.e. three months after the coming into force of the provisions of Section 11A of the Central Excise Act, 1944 on 26.5.95, on the amount which was liable to be repaid by the petitioner, after losing the appeal which was filed in the Supreme Court, being the amount of refund of duty and interest, which the petitioner had obtained under a decree passed by the Civil Court.

(3.) The petitioners had filed Suits, which came to be decreed by the Civil Courts for refund of the excise duty, which was held by the High Court not leviable on blended yarn, prior to the insertion of the Tariff Item No. 18(E) on 16.3.1972.