GOVIND MILLS LTD Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) By means of the present writ petition, the petitioner has challenged the order dated 5-7-2004 passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi, by which the Tribunal has allowed the interest at the rate prescribed under the law after three months from the date of filing of refund application till the date of payment. Sri S.D. Singh, Senior Advocate, appearing on behalf of the petitioner, states that a search was conducted at the premises of the petitioner on 12-8-1998. By coercive method being adopted against the petitioner, a sum of Rs. 20 lacs had been deposited on 12-8-1998. By the order dated 6-12-2000, the adjudicating authority had raised a demand of Rs. 21 lacs and had adjusted the aforesaid amount of Rs. 21 lacs. Against the said order, the petitioner filed an appeal before the Tribunal. The Tribunal vide order dated 15-5-2002 set aside the demand order of the adjudicating authority. The petitioner moved an application for the refund of the amount on 8-7-2002, which has been allowed and in pursuance thereof, the amount had been refunded on 11-3-2003, however, the interest under Section 11B of the Act had not been paid. The petitioner filed an application for the payment of interest, which has been rejected vide order dated 11-6-2003. Against the said order, the petitioner filed an appeal before the Commissioner of Central Excise which has been dismissed vide order dated 11-11-2003 against which the petitioner filed second appeal before the Tribunal, which has been allowed with the following observation:

(2.) Learned counsel for the petitioner submitted that against the order of the Tribunal, the Revenue filed an appeal before the Hon'ble Supreme Court, which has been dismissed on 25-10-2007 along with other connected Civil Appeals with the following observations:

(3.) He submitted that in the case of Commissioner of Central Excise, Hyderabad v. I.T.C. Ltd, 2005 179 ELT 15, the Hon'ble Supreme Court has directed for payment of interest @ 12%. He further submitted that the petitioner is also entitled for the interest for the period 12-8-1998 till 6-12-2000 when the adjudication order has been passed inasmuch as the said amount has been illegally retained without any legal demand against the petitioner.