GLENVIEW PLASTIC SYSTEM PVT. LTD. Vs. CCE

JUDGEMENT

(1.) This is an appeal against OIA No. 6/2000 (H -I) CE dated 18.1.2000.

(2.) The facts relevant for the present case are as follows: The Commissioner of Customs and Central Excise Hyderabad -I Commissionerate passed an order -in -original demanding duty of Rs. 26,24,976/ - for the period from April 1990 to July 1994 under Rule 9(2) of the Central Excise Rules 1944 read with Proviso to Section 1 lA(i) of Central Excise and Salt Act 1944 on account of clubbing of clearances. An amount of Rs. 9,62,500/ - was demanded on account of clandestine clearance. Penalty of Rs. 7 lakhs was imposed under Rule 173Q of the Central Excise Rules. Interest amount under Section 11AB was also demanded. The appellants paid the duty, penalty and interest. The appellants did not challenge the order of the Commissioner at all. However, later they learned that the period of dispute is prior to 28th September 1996 and for the period prior to 20th September 1996, Section 11AB is not applicable, as the Section 11AB does not have retrospective effect. Since the interest is not legally payable, they filed a refund claim to the jurisdictional Assistant Commissioner Central Excise. The Assistant Commissioner of Central Excise Hyderabad -I rejected the refund of interest on the ground that they had not challenged the order of the Commissioner dated 25.10.1997. The appellants approached the Commissioner (Appeals) who passed the impugned order confirming the OIO passed by the Assistant Commissioner. In the said order, the Commissioner (Appeals) held that the interest is payable. Further he held that the appellants did not appeal against the Commissioner's order demanding interest. Hence the order of the Commissioner has become final. The appellants strongly challenged the OIA.

(3.) Shri G. Shivadas learned advocate appeared for the appellants and Shri R.N. Viswanath for the Revenue.