VARANASI BOTTLING CO. PVT. LTD. Vs. CCE

JUDGEMENT

(1.) EXAMINED the records and heard both the sides. The appellants had pre -deposited on amount of Rs. 3,60,150/ - with the department under Section 35F of the Central Excise Act for the purpose of Appeal No. E/856/97 -D as per direction of this Tribunal. That appeal was finally disposed of in their favour as per Final Order dated 5.11.99. subsequently, the party applied for refund of the amount. In that application they also claimed interest on the amount. The Assistant Commissioner of Central Excise, however, ordered appropriation of the pre -deposit amount towards a demand of duty of over Rs. 5 lakhs which was subject matter of an appeal then pending with the commissioner (Appeals). Aggrieved by the decision of the Assistant Commissioner, the party preferred appeal to the Commissioner (Appeals), but the latter dismissed it. Hence the present appeal.

(2.) IT has been submitted by Id. counsel for the appellants that there is no provision for set -off of pre -deposit against demand of duty. It has been further contended that the question of refundability of pre -deposit with interest is covered in favour of the assessee by decisions of this Tribunal. The following decisions have been cited : -

(3.) I have examined the submissions and perused the cited judgments, and I find that the issue stands squarely covered in favour of the appellants, by the cited case law. In all the said cases, amounts pre -deposited under Section 35F were ordered to be refunded with interest from the date of the Tribunal's Final Order. The Tribunal's Larger Bench has confirmed the refundability of pre -deposits with interest in the cited case of Sheela Foam Pvt. Ltd.