TEXMA CO LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Although the present mandamus appeal is at the instance of the Revenue and is directed against an interim order dated 5th May, 2011 passed by a learned Single Judge of this Court, by which the learned Single Judge passed an interim order staying the demand of interest, in this appeal, we in the past directed the respondents before us to deposit 50% of the amount so demanded and as suggested by the learned Counsel appearing for the parties, instead of remanding the matter back, we decided to hear out the writ application itself, as this writ application can be disposed of on a pure question of law.

(2.) Consequently, we heard the learned Counsel appearing for the parties on the merit of the writ application itself and propose to dispose of this appeal on merit.

(3.) In the writ application, the writ petitioners challenged a demand in the form of a letter dated 22nd May, 2008 (Annexure P-17) by which the Superintendent of Central Excise demanded interest in terms of Section 11AA of the Central Excise Act, 1944 (Act) amounting to Rs.1,41,51,267, as indicated in the annexure to the said demand, which is annexed at page 159 of the stay application before us.