ASEA BROWN BOVERI LTD. Vs. CCE

JUDGEMENT

(1.) This appeal arises from OIA No. 604/2002 -CE dated 9.10.2002. The appellants had been granted refund of the amounts deposits by the them under Section 35F of the Act. However, the Department initiated proceedings for recovery of interest amount paid @ 24% on the ground that there is no provision to grant interest on delayed refund of pre -deposit.

(2.) We have heard both sides in the matter and find that the issue is covered in the appellants' favour by virtue of the Bombay High Court judgment rendered in the case of Suvidhe Ltd. v. Union of India wherein the Bombay High Court has clearly held that interest is liable to be paid for delayed payments of pre -deposit @ 15% per annum. This judgment has been approved by the Apex Court as noted in 1997 (94) ELT A 159 (SC). Likewise, the Karnataka High Court also, in the case of Nestle India Ltd. v. Assistant Commissioner of C. Ex. Mysore -II has also held that Interest @ 15% is required to be paid while refunding the pre -deposit. The Tribunal, in the case of B.P.C.L. v. CCE, Kochi has also ordered for refund of the pre -deposit amount on payment of interest at 12%. In the present case, the learned Counsel submits that the interest payable on the amount of pre -deposit would work out to Rs. 7,74,692/ - and @ 15% to Rs. 9,68,365/ - for a period of 7 months. The interest paid by the department is only Rs. 6,91,698/ - and the department has to still pay some more interest to them and instead of granting the same, they are resorting to recover the interest paid to the appellants which is not justified in the light of the citations referred to above.

(3.) The learned SDR reiterated the departmental view.