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Issues Involved:
The judgment addresses the issues of erroneous excise duty collection, unauthorized retention of funds by public bodies, entitlement to interest on refunded amounts, and legal principles governing the repayment of unlawfully collected funds. Erroneous Excise Duty Collection: The applicant, a manufacturer of electrical appliances, faced demand notices for excise duty based on incorrect pricing determinations by the excise authorities. Despite contesting the demands, the appellate authority upheld the duty calculation method. However, a subsequent writ petition found the demands to be without jurisdiction, leading to a refund of the excess duty paid. Entitlement to Interest on Refunded Amounts: Following the refund, the applicant sought interest on the amount retained by the excise authorities without legal authority. The respondents initially denied liability for interest, citing the absence of provisions in the Central Excises and Salt Act, 1944. The applicant argued for interest at 12% per annum, supported by legal precedents directing payment of interest on unlawfully collected amounts. Legal Principles Governing Repayment of Unlawfully Collected Funds: The judgment emphasizes that excise duty liability rests with manufacturers, not buyers. Given the unauthorized collection and retention of funds by the excise authorities, the court deemed it unjust for the manufacturer to be deprived of interest on the wrongfully collected amount. Citing legal precedents, the court ordered the respondents to pay interest at a rate of 12% per annum from the date of collection until actual repayment, rejecting the respondents' stance against interest payment. This comprehensive summary captures the key issues addressed in the judgment, detailing the circumstances, legal arguments, and final ruling regarding the erroneous excise duty collection, entitlement to interest on refunded amounts, and legal principles governing the repayment of unlawfully collected funds.
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