HOPE TEXTILES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this petition under Article 226 of the Constitution of India, the petitioners seek issuance of writ of mandamus, directing the respondent to pay to the petitioners interest on the delayed refund of excise duty @ 18% p. a. with quarterly rest.

(2.) PETITIONER No. 1 M/s. Hope Textiles Ltd. , is a Company carrying on the business of manufacture and sale of textile. Petitioner No. 2 is its Principal Officer. The respondent had levied Central Excise duty to the tune of Rs. 2,00,240. 89 on the Drills manufactured by the petitioner No. 1 during the period between June, 1978 and November, 1979. The petitioner preferred claim before the Assistant Collector, Custom and Central Excise, Indore under Section 11-B of the Central Excise and Salt Act, 1944 (for short 'the Act') for refund of the aforesaid duty as according to the petitioners the duty was wrongly levied on it. The claim was rejected by the Assistant Collector vide his Order dated 30-9-80. Aggrieved by this Order the petitioners preferred an appeal to the Collector of Customs and Central Excise (Appeals ). The said appeal (No. 469/80) was allowed by the Collector and it was held that the duty was levied illegally. Order for refund of the said amount was made by the Collector. Notwithstanding the Order for refund made by the Appellate authority, the respondent did not refund the amount until on 12-4-89 when the amount was finally refunded through a Cheque No. 604382 dated 12-4-89, drawn on Central Bank of India, Indore.

(3.) THE petitioners claim interest @ 18% p. a. with quarterly rest on the said amount as according to them the amount was firstly levied wrongly and was then wrongfully withheld notwithstanding the petitioners claim and Order passed in appeal for refund of the said amount.