KANDHARI BEVERAGES LTD. Vs. UNION OF INDIA (UOI)

JUDGEMENT

(1.) THE petitioner is engaged in the manufacture of aerated water. On May 9, 1995 the petitioner's claim for Modvat credit of Rs. 1,10,66,702.46 was declined by the Commissioner, Central Excise. The petitioner filed an appeal before the Tribunal and prayed for waiver of deposit. The prayer was partly accepted. The petitioner was directed to deposit Rs. 80,00,000/ - within three months from the date of the order. In pursuance to this order, the petitioner had made the deposit on February 7, 1996.

(2.) ON August 17, 1999 the order dated May 9, 1995, passed by the Commissioner, was set aside. The case was remanded for a fresh decision. In pursuance to this order, the petitioner submitted an application dated October 27, 1999 for refund of the amount deposited by it in accordance with the provisions of law. Various representations followed. On June 6, 2001 respondent No. 4, viz. the Deputy Commissioner, Central Excise, informed the petitioner that the amount has been sanctioned as refund 'by way of credit in Cenvat'. No interest was, however, determined or credited. The petitioner pointed out that the order was not in conformity with law. It was entitled to the amount deposited and interest thereon. The petitioner even represented to the Tribunal. Having failed to get the refund, the petitioner has approached this Court with the prayer that the respondents be directed to grant the refund of Rs. 80,00,000/ - with interest at the rate of 15% per annum.

(3.) LEARNED Counsel for the parties have been heard.