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2010 (8) TMI 613 - HC - Central ExciseRefund - Deposit of supervision charges in excess - provision for the payment of supervision charges has been withdrawn - The refund has been denied to the petitioner on the ground that there is no head for refunding the amount - Held that - the respondents have illegally withheld the amount refundable and therefore the petitioner is entitled for the interest even in the absence of any specific provision - The respondents are directed to refund the amount along with interest at the rate of 10% from the date of order till the date of actual payment.
Issues:
Claim for refund of supervision charges in excess, denial of refund by the respondent, entitlement to interest on the refundable amount. Analysis: The petitioner filed a writ petition seeking a refund of Rs. 7,50,613/- overpaid towards supervision charges after the provision for such payment was withdrawn. The Deputy Commissioner determined the excess amount refundable at Rs. 4,33,490/- instead of the claimed Rs. 5,16,365/-. Further, the petitioner claimed an additional refund of Rs. 2,34,248/-, out of which Rs. 2,03,131/- was found refundable. The respondent denied the refund citing the absence of a specific head for refund. However, in a counter affidavit, it was admitted that a total of Rs. 6,36,621/- was refundable to the petitioner, which the petitioner agreed to accept. The petitioner argued for the entitlement to interest on the refundable amount, contending that the amount had been illegally withheld by the respondent. Reference was made to a Division Bench decision of the Apex Court to support this claim. The respondent, on the other hand, argued against the payment of interest in the absence of a specific provision for it. After hearing both parties and examining the documents, the court found that the respondents had unlawfully withheld the refundable amount. Citing the precedent set by the Apex Court, the court ruled in favor of the petitioner, directing the respondents to refund the amount of Rs. 6,36,621/- within three weeks from the date of the order, along with interest at the rate of 10% from the date of the original order till the actual payment date.
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