2001 (9) TMI 123 - HC - Central Excise

Summary

The High Court rejected the application under Section 35H(1) of the Central Excise Act, 1944 by the Union of India regarding the refund of excise duty encashed from a bank guarantee. The court held that the bank guarantee is not equivalent to payment of excise duty and therefore does not qualify for a refund under Section 11B. The department was directed to repay the encashed amount to the assessee based on the decision of the Apex Court in the Oswal Agro Mills case.