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TMI Blog2006 (10) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... artment of Telecommunications. Due to Revenue s compulsion, duty was paid under protest. However, the Hon ble Andhra Pradesh High Court ruled that no duty is payable on Cable Jointing Kits, as putting up various items as a Kit does not amount to manufacture. Refund of duty was ordered vide Writ Petition No. 5048/1998 dated 27-2-1998. The Assistant Commissioner, Hyderabad, in his order dated 6-5-1998, rejected the refund claim on grounds of unjust enrichment. The appellants approached the Commissioner (Appeals). The Commissioner (Appeals), in his order dated 20-7-1998 held that the appellant was entitled for the amount of refund only and not for the interest. Pursuant to the above order of the Commissioner (Appeals), the Assistant Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, the date of payment of the duty is 11-8-1998. This amount comes to Rs. 70,47,025/-. Further, the appellant took the stand that when refund made is part principal and part interest, and when the principal amount is payable with interest, interest portion should be recovered first and the remaining amount adjusted towards principal. This stand was not accepted by the Commissioner (Appeals). Therefore, the Commissioner (Appeals), in the impugned order dated 28-2-2005, has rejected the appellant s appeal. According to the Commissioner (Appeals), the case-laws quoted by the appellants are not relevant. The appellants strongly challenge the impugned OIA. 3. S/Shri M. Chandrasekharan, the learned Senior Advocate and V.J. Sankaram, the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) 1996 (1) ALD 561. Andhra Pradesh : Sukhdev Pershad v. B. Kishanlal and others. All amounts paid by the judgment debtor towards decree amount should first be appropriated towards interest and excess if any towards the principal amount. (iv) 1998 (68) STC 177. State of Andhra Pradesh v. Commercial Tax Officer, Kurnool and Another. The authorities and the Tribunals functioning within the jurisdiction of the High Court, and in respect of whom the High Court has the power of superintendence under Article 227 of the Constitution are bound to follow the decisions of the High Court, unless on appeal the operation of the judgment has been suspended. It is not possible for the authorities and the Tribunals to ignore or refuse to follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one, the amount which was paid on that date contains only interest accrued upto that date and also part of the principal amount. From that date onwards, the principal amount remaining to be paid after the issue of cheque, would amount to Rs. 69,69,250/-. If this amount is discharged together with interest, the total amount still outstanding from the department would be Rs. 99,40,978/-. The Assistant Commissioner limited the interest to the date of payment of cheque which is not correct and proper. He refunded an amount of Rs. 69,72,293/-. Therefore, an amount of Rs. 99,40,978/- is payable by the Department towards full discharge of the amounts collected and the interest accrued due to such wrongful collection. 4.2 The observation of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid adjusted towards principal first and remaining towards interest payable thereon as a matter of practice since no specific procedure has been prescribed in the Central Excise Act/Rules to calculate the liability of interest. As such in case of refund too, same procedure should be applicable as a principle of equity. 6. We have gone through the records of the case carefully. When the refund along with interest was to be paid as per the Hon ble High Court s order dated 27-2-1998, the lower authority issued a cheque for an amount of Rs. 2,35,36,913/- on 6-8-1998. As the levy and collection on a non-excisable commodity is illegal, the duty collected is without any authority of law. In terms of the High Court s order, Revenue should have d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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