Refund Ordered with Interest: Rs. 1.16 Crore to Be Returned with 8% Interest, Rising to 15% if Delayed Beyond 3 Months.

The Court ruled that the amount of Rs. 1,16,41,592/- paid under protest by the petitioners was not duty and must be refunded with 8% interest per annum from the date of the Supreme Court's order. If the refund is not made within three months, the interest rate increases to 15%. The petitioners were also awarded Rs. 2,500 in costs for pursuing the refund.

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Issues involved: Refund of amount paid under protest during pendency of appeals before the Hon'ble Supreme Court, consideration of amount as duty by respondent authorities, obligation to provide evidence of non-passing of duty incidence to buyers, entitlement to refund based on legal precedents and circular.

Refund of Amount Paid Under Protest: The petitioners had deposited a sum of Rs. 1,16,41,592/- under protest with the respondent authorities during the pendency of appeals before the Hon'ble Supreme Court. The Supreme Court later allowed the appeals, holding that the concerned intermediate products were not dutiable. The petitioners sought refund of the amount, which was not refunded by the respondent authorities despite the Supreme Court's decision.

Consideration of Amount as Duty: The respondent authorities, in an order dated 10-6-2003, directed the amount to be credited to the Consumer Welfare Fund, treating it as duty paid. The petitioners contended that the amount was paid under protest and was not duty, as no stay had been granted by the Supreme Court during the appeals.

Obligation to Provide Evidence: The Asstt. Commissioner called upon the petitioners to submit proof that the duty amount had not been passed on to the buyers. The petitioners clarified that the amount was paid under protest and was not duty, hence no evidence of non-passing of duty incidence was required.

Entitlement to Refund: The petitioners argued, citing legal judgments and a circular, that the amount paid under protest was not duty and should be refunded based on the Supreme Court's decision and relevant legal principles. The respondent authorities contended that the amount deposited was indeed duty and no interest should be paid on any refund.

Court's Decision: After considering the arguments and legal precedents, the Court held that the amount paid under protest was not duty and should be refunded to the petitioners with interest. The Court ordered the immediate refund of the amount with 8% interest per annum from the date of the Supreme Court's order. If not paid within three months, the interest rate would increase to 15%. Additionally, the petitioners were awarded costs of Rs. 2,500 for having to approach the Court for the rightful refund.

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