CALCUTTA IRON & STEEL COMPANY Vs. CESTAT, CHENNAI

JUDGEMENT

(1.) This is an appeal filed by the assessee which is directed against the order of the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Chennai, (in short 'the Tribunal') dated 31st Aug., 2010 [2010 (260) E.L.T. 311 (Tribunal)]. The appeal was admitted by our predecessor Bench when the following question of law was framed for consideration of this Court :

(2.) Before we proceed further, we may only indicate that the controversy in the appeal falls in a narrow compass. The assessee seeks payment of interest on the moneys deposited pursuant to investigation carried out at its premises by the Directorate of Revenue Intelligence (in short 'DRI'), while the Revenue resists the claim for payment of interest, as it is the stand of the Revenue that the moneys so deposited was in the nature of security deposit. The assessee, on the other hand, contends that pursuant to the adjudication order passed on 30th June, 1997, by the Commissioner of Customs (Imports) (in short 'the Commissioner'), even if it is assumed that, to begin with, the deposit made was in the nature of security deposit, it certainly took the colour of a duty and therefore, interest under Sec. 27A of the Customs Act, 1962, (in short 'the Act') is payable to the assessee.

(3.) Quite frankly, the matter has taken several twists and turns and therefore, in order to appreciate the context in which the deposit was made, certain broad facts would have to be noticed. These are as follows :