2012 (1) TMI 230 - HC - Central Excise

Summary

Issues involved:
The issues involved in the judgment are the entitlement of an assessee under the Central Excise Act to claim interest on delayed repayment of duty amount, the appropriate remedy for claiming interest, and the misconceived attempt of filing a writ petition seeking relief.

Entitlement to Claim Interest:
The judgment clarifies that when the issue of payment of interest to an assessee on tax or duty refund is governed by statute, the appropriate remedy is to exhaust all statutory remedies before approaching the writ court under Article 226/227 of the Constitution of India. The Act provides a specific remedy for the assessee to claim interest on adjudicated dues if not paid within the specified time after determination.

Misconceived Attempt of Filing Writ Petition:
The court finds the filing of the writ petition to be a misconceived attempt as the relief claimed is vague and general, lacking essential details such as due dates, quantification of dues, and specifics of the claim for interest. Even if these details were provided, the statutory remedy under the Act should have been pursued before approaching the writ court. The judgment highlights that the claim for interest on the refunded duty amount was not entertainable as the amount was paid to the assessee on the same day as the order of determination, leaving no basis for claiming interest.

Decision and Dismissal of Writ Petition:
The court dismisses the writ petition, finding it devoid of merit and liable for dismissal. The judgment emphasizes that since the claim for interest was not tenable under the Act itself, it could not be entertained in the writ petition. The court rejects the contention that the writ petitioner was entitled to claim interest based on a previous decision, stating that the claim for interest did not arise due to the prompt payment of the quantified duty refund amount. The writ petition is dismissed with no cost awarded.