ASHOK ORGANICS INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner No. 1 is a company incorporated under the appropriate provisions of the Companies Act, 1956. Petitioner No. 2 is a shareholder and Director thereof. Petitioners are engaged in the manufacture of certain chemicals at their factory. In respect of certain goods manufactured and cleared by them, show- (6) Spl. C. A. 1126 of 1990 decided on 12-12-1994 by Guj. High Court cause notice was issued by the Asstt. Collector of Central Excise, Division V. Baroda, demanding an amount of Rs. 47,671.72 ps. (Rupees forty-seven thousand six hundred seventy-one and paise seventy-two only), as the amount recoverable from the petitioners. The Assistant Collector confirmed the demand notice as per his order dated March 26, 1985. Against the said order the petitioners preferred appeal before the Collector (Appeals). In the appeal, the petitioners succeeded. The Collector of Central Excise (Appeals), Bombay, reversed and set aside the order passed by the Assitant Collector and directed to grant consequential relief. As the petitioners were not paid the amount, they filed writ petition before this High Court, and this Court directed to pay the amount in question.

(2.) The petitioners now pray that on the principal amount of Rs. 47,671.72 ps., interest at the rate of 18% per annum should be paid till the amount was refunded to them. Hence, the petition praying that the respondents be directed to pay the amount of interest at the rate of 18% on the principal amount from the date when the amount was recovered till the date of payment by the respondents. The petition is filed on February 5, 1990.

(3.) It is an undisputed position that the questions raised in this petition are covered against the petitioners by the decision of this Court in the case of Satellite Engineering Ltd. v. Asstt. Collector of Central Excise, reported in 1992 (58) E.L.T. 503 (Guj.). The said decision has been followed by another Division Bench in Special Civil Application Nos. 1126, 1127 and 1128 of 1990 decided on December 12, 1994. We reproduce hereinbelow paras 2, 3 and 4 of the decision rendered in Special Civil Application Nos. 1126, 1127 and 1128 of 1990 :