KANORIA CHEMICALS AND INDUSTRIES Vs. CCE

JUDGEMENT

(1.) This appeal is against denial of interest on an amount of Rs. 10 lakhs refunded to the appellants. The said amount was deposited by the party under Section 35F of the Central Excise Act in Appeal No. E/2900/93 as directed by this Tribunal. That appeal was allowed as per Final Order No. A/71/98/NB dated 19.2.98 as Modified by Misc. Order No. M/271/98/NB (DB) dated 9.10.98 passed in ROM application No. 46/98/NB. As per the said order, the demand of duty and the penalty on the appellants stood set aside. The final Order dated 19.2.98 was received by the party on 12.3.98 and the Misc. Order dated 9.10.98 was received some time in November or December 1998. The amount of Rs. 10 lakhs pre -deposited in the above appeal was refunded to the appellants on 30.12.99 as per order which was passed on the refund claim dated 19.3.98. The grievance in the present appeal is that interest was not paid on the above amount.

(2.) Ld. counsel for the appellants submits that, in view of decisions of this Tribunal, the appellants are entitled to interest on the amount of pre -deposit from the date of expiry of three months from the date of receipt of Final Order of the Tribunal till the date of payment. Counsel has cited the Tribunal's decision in Sharda Synthetics Ltd. Vs. CCE (2003 (156) ELT 730).

(3.) I have heard the DR also, who has not cited any authority on the issue, better than what has been cited by the counsel.