9911796707
TMI Blog2004 (12) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... Noida [2003 (154) E.L.T. 522 (Tri. - LB)] granting interest on refund of pre-deposit of duty, has been rendered without taking into consideration the Supreme Court's decision in Orient Enterprises [1998 (99) E.L.T. 193 (S.C.)] and therefore calls for a re-examination by a still Larger Bench particularly in view of the provisions contained in Section 11BB of the Central Excise Act. 2. The Larger Bench is constituted to examine whether the decision rendered in Sheela Foam is in conflict with the decision in Orient Enterprises of the Supreme Court. The two decisions cited supra dealt with facts entirely different and are set out hereunder. In Sheela Foam Pvt. Ltd. v. CCE, Noida [2003 (154) E.L.T. 522 (Tri.-LB)], the Tribunal in its final or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oached the Tribunal for issuing directions to the lower authorities. The Tribunal directed the Collector to refund the money to the importer within 60 days period. The Collector refunded the amount. The importer thereupon filed a Writ in the High Court claiming that he is entitled to interest on the amount involved. The High Court disposed off the Writ directing the department to pay interest at 12% from the date of filing of the revision application till the date of payment. The Union of India went in appeal against the order of the High Court. The Supreme Court allowed the appeal and set aside the order of the High Court. 3. The Supreme Court made some important observations while allowing the appeal of the Union of India. An order pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redemption fine therefore cannot be upheld. 5. We observe that there is no conflict between the decision in Sheela Foam and Orient Enterprises. The latter was dealing with the interest on redemption fine to be refunded while the former was concerned about interest on deposit of duty. We conclude that no interest is payable on redemption fine and penalty while refunding the same in pursuance of an order of a higher judicial forum as observed by the Supreme Court in Orient Enterprises' case. The case of interest on consequential refund of duty is covered by the decision in Sheela Foam case. There is no conflict between these decisions. We hold accordingly. 6. The appeals themselves are disposed off by holding that the appellants are not e ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
