PADMANABH SILK MILLS Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner No.1 - M/s. Padmanabh Silk Mills, partnership firm, and its partner Shri Navnitbhai Nathubhai Gandhi, petitioner No.2, have filed this petition before this Court under Article 226 of the Constitution and prayed that a writ of mandamus or in the nature of mandamus or any other appropriate writ, direction or order be issued to the respondents and the decision of the respondent - Authority dated 29.8.2001 (Annexure : I) be quashed and set aside and the respondents be directed to pay interest to the petitioners at the rate of 15 % p.a. on the refund amount for the period from 22.2.1997 to 18.11.1999.

(2.) The Commissioner of Central Excise & Customs, Vadodara, passed an Order in Original on 29.1.1997 confirming certain amount of duty and penalties imposed on the petitioner firm. Against the said order passed in OIO, the petitioner firm filed Appeal and Stay Application before CEGAT wherein common stay order dated 22.9.1992 was passed by the CEGAT directing the petitioner firm to deposit Rs.4 lacs in cash as condition for hearing of Appeal on merits (Annexure : A). Accordingly, the petitioner had deposited Rs.4 lacs by way of pre-deposit before the concerned Authority. Thereafter, the Appeal of the petitioner was finally allowed by CEGAT and the impugned order of duty and penalty imposed on the petitioner firm by the Commissioner, Central Excise & Customs, Vadodara, was quashed and set aside, vide order dated 5.8.1996.

(3.) Thereafter, on 22.11.1996, the petitioners filed refund claim (Annexure : B collectively) before the Assistant Commissioner, Central Excise, Div.IV, Surat. It is the case of the petitioners that their refund claim Application was not decided by the respondents on the ground that they wanted to approach this Court, therefore, the petitioners were constrained to approach this Court by way of Special Civil Application No.5027/97 which was disposed of on 6.10.1997 (annexure : C) by the Division Bench of this Court, directing the respondents to decide their refund claim Application, in accordance with law, within 3 months from the date of the order. The Assistant Commissioner, Central Excise, Div.II, Vapi, by his order dated 5.1.1992 (Annexure : D) rejected the refund claim Application on the grounds stated in it. Aggrieved of the same the petitioners filed Appeal before the Commissioner of Central Excise & Customs (Appeals), Vadodara, which was later on transferred to the Commissioner (Appeals), Surat and the said Appeal was allowed on 25.2.1999 (Annexure : E).