T T BLADES Vs. UNION OF INDIA

JUDGEMENT

(1.) The controversy in this petition lies in a narrow compass. The petitioners filed an application for refund of duty alleged to be paid in excess, in respect of manufacture of the goods covered under Tariff Item No. 68. The Assistant Collector rejected the claim. The petitioners preferred appeal before the Appellate Collector and appeal was decided in favour of the petitioners. The order passed by the Appellate Authority was challenged by the Department by filing appeal before the CEGAT.

(2.) During the pendency of the appeal before the CEGAT, the petitioners filed the present petition under Article 226 of the Constitution claiming a direction to the Department to deposit amount of refund ascertained by the appellate authority in this Court. The petitioners also claimed that on deposit the amount shall be paid over to the petitioners. The learned Single Judge while admitting the petition on December 19, 1984 directed the Department to deposit a sum of Rs. 2,59,814/- in this Court and further directed the petitioners to withdraw the same on undertaking, that in the event of the respondents succeeding in the appeal before the CEGAT, the petitioners will return the amount alongwith such interest as may be determined by the appellate Court.

(3.) The appeal preferred by the Department before the CEGAT succeeded and order of refund was set aside, but the proceedings were remitted back to the Assistant Collector for fresh disposal. After remand, the Assistant Collector dismissed the claim for refund by order dated January 17, 1989.