High Court affirms appeal dismissal, orders return of brass scrap sale proceeds without interest. Interest only if explicitly stated.

The High Court upheld the dismissal of the revenue's appeal by CESTAT, directing the return of confiscated brass scrap sale proceeds without interest. Relying on precedent, the Court emphasized that interest is not payable unless explicitly stated in the order. The petitioner's request for interest was denied, and the opposite parties were instructed to resend the cheque for the amount within one month if not previously accepted. The Court concluded by emphasizing the non-applicability of interest unless specifically directed, in line with the precedent set by Union of India vs. Upper Ganges Sugar and Industries Ltd.

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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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