MAHAVIR METAL MART Vs. UNION OF INDIA

JUDGEMENT

(1.) This Suit is filed for recovery of the interest payable on the amount of refund of excise duty applied for by the plaintiff and granted by the defendants to the plaintiff under section 11-BB of the Central Excise Act, 1944 (the Act) with further interest at the rate of 19% per annum from the date of the Suit until payment.

(2.) The plaintiff was held liable for payment of excise duty. The plaintiff disputed the liability. The plaintiff claimed exemption. The exemption was disallowed. The plaintiff was directed to give a Bank Guarantee of Rs. 1 Lakh. The Bank Guarantee came to be enforced on 8.2.1985. The plaintiff was directed to pay additional amount of Rs. 1292.12 as Excise duty not covered under the Bank Guarantee on 23.11.1985. The plaintiff paid under protest. The plaintiff challenged the order before the Appellate Tribunal. The order of the Commissioner was confirmed. The plaintiff challenged that order also before the Supreme Court. The Supreme Court set aside the order of the Tribunal and directed the Central Excise Authority to assess the value of the goods cleared by the plaintiff and refund the duty paid by the plaintiff if the exemption notification was applicable to the plaintiff.

(3.) The defendants allowed the exemption and hence refunded the excise duty payable by the plaintiff which was recovered by encashment of the Bank Guarantee and the further payment made by the plaintiff upon the application made by the plaintiff.