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2019 (12) TMI 1657 - HC - CustomsRefund of confiscated brass scrap s sale proceeds with interest - HELD THAT - The CESTAT passed an order in favour of the petitioner. The direction was given to the revenue to return the scrap. The revenue challenged the said order. Their appeal was dismissed by the High Court in the year 2016. The administration thus passed an order on 22.06.2016 to return the sale proceeds as scrap was sold in between. A cheque was also enclosed alongwith it but it was not accepted as he was demanding interest. The interest would not be payable to the petitioner in absence of the order by the CESTAT. The petitioner has not even challenged the order dated 22.06.2016. The view taken by the opposite parties is supported by the judgment of the Apex Court in the case of UNION OF INDIA VERSUS UPPER GANGES SUGAR INDUSTRIES LTD. 2005 (1) TMI 109 - SUPREME COURT . Thus the demand of interest on a sum of Rs.1, 99, 327/- is not admissible. However if the amount aforesaid has not been accepted by the petitioner earlier the opposite parties are directed to send the cheque again within a period of one month from the date of production/receipt of certified copy of this order. Petition disposed off.
Issues:
1. Direction sought for refund of confiscated brass scrap sale proceeds with interest. 2. Contention regarding interest payment. 3. Challenge to the order passed by CESTAT. 4. Dismissal of appeal by High Court. 5. Validity of order dated 22.06.2016. 6. Applicability of judgment in the case of Union of India vs. Upper Ganges Sugar and Industries Ltd. Analysis: The writ petition was filed to seek a direction for the refund of the confiscated brass scrap sale proceeds amounting to Rs.1,99,327, along with interest. The petitioner argued that since the scrap was seized in 2001 and the order for release of the amount was passed in 2016, interest should be paid as the opposite parties had enjoyed the amount during the intervening period. However, the opposite parties contended that the CESTAT's final order only directed the return of the scrap without mentioning interest payment. They relied on the judgment of the Apex Court in Union of India vs. Upper Ganges Sugar and Industries Ltd., stating that interest is not payable if not specifically directed. The order dated 22.06.2016, which directed the return of the sale proceeds, was also not challenged by the petitioner. The High Court observed that the CESTAT had indeed passed an order in favor of the petitioner directing the revenue to return the scrap. The revenue's appeal against this order was dismissed by the High Court in 2016, leading to the issuance of the order dated 22.06.2016 for the return of the sale proceeds. The petitioner's demand for interest was deemed inadmissible by the Court, citing the judgment in the case of Upper Ganges Sugar and Industries Ltd. The Court directed the opposite parties to resend the cheque for the amount within one month if it had not been accepted earlier by the petitioner. If the amount had already been received, no further action was required. In conclusion, the Court disposed of the writ petition with the direction for the possible reissuance of the cheque for the sale proceeds, emphasizing that interest on the amount was not payable unless specifically directed by the CESTAT. The judgment in the case of Union of India vs. Upper Ganges Sugar and Industries Ltd. was crucial in determining the admissibility of interest payment in this context.
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