Supreme Court sets timelines for deposit, resolution, and investment in tax dispute, emphasizing expeditious process.

The Supreme Court directed the assessee to deposit a specified amount with interest pending the resolution of the Reference, emphasizing expeditious resolution. Timelines were set for the Tribunal to forward the Statement of Case, the High Court to decide within three months, and for funds to be transferred and invested. The Court kept all contentions open, disposing of the Civil Appeal subject to costs paid by the respondent.

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Issues involved:
1. Imposition of redemption fine and penalty by Commissioner's Order.
2. Tribunal's order directing refund of redemption fine and penalty with interest.
3. Dismissal of Reference Application by CEGAT.
4. Grant of refund by the Department during the pendency of the Reference.
5. Claim for interest on the refunded amount by the assessee.
6. Commissioner's rejection of the claim for interest.
7. Writ Petition filed by the assessee challenging the Commissioner's order.
8. Supreme Court's directions regarding deposit and transfer of funds.

Analysis:
1. The Commissioner imposed a redemption fine and penalty on the assessee by an order dated 30th October, 1986. The assessee filed an appeal before CEGAT against this order, and the Tribunal allowed the appeal on 30th April, 1990, directing the Revenue to refund the amounts within thirty days with interest at 12% per annum. The Tribunal also transferred the cross objection to the Special Bench, CEGAT, for disposal.

2. The Department's Reference Application was dismissed by CEGAT on 29th October, 1990. Subsequently, the Calcutta High Court made the rule absolute on two questions related to the Tribunal's order of setting aside the Commissioner's order and directing the refund with interest. The High Court directed CEGAT to submit a "Statement of Case" within three months.

3. The assessee requested a refund of the deposited amount in 1999, which was granted by the Department in 2000 during the pendency of the Reference. The Department did not appeal against this refund. The assessee then claimed interest on the refunded amount, leading to a series of legal actions, including a Writ Petition which was allowed by the High Court.

4. The Supreme Court, in August 2008, directed the assessee to deposit a specified amount with interest due, pending the resolution of the Reference. The Court also issued directions for the transfer of funds to the Kolkata High Court and investment in a fixed deposit. The Court emphasized the need for expeditious resolution of the pending Reference.

5. The Supreme Court's directions included timelines for the Tribunal to forward the Statement of Case, the High Court to decide on the Reference within three months, and the transfer and investment of funds by the Kolkata High Court. The Court kept all contentions open and disposed of the Civil Appeal subject to the payment of costs by the respondent.

This detailed analysis covers the various legal issues and actions taken in the case, highlighting the sequence of events leading to the Supreme Court's final directions and decision.

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