2002 (10) TMI 113 - HC - Central Excise

Court Orders Refund Payment with Interest to Petitioner in Tax Dispute Case

NIJRANG PRINT PACK PVT. LTD. Versus UNION OF INDIA

NIJRANG PRINT PACK PVT. LTD. Versus UNION OF INDIA - 2005 (184) E.L.T. 11 (Guj.) Issues:Non-payment of refund of duty by the respondents.Analysis:The petitioner company filed a petition regarding the non-payment of a refund of Rs. 2,27,964 by the respondents. The petitioner was directed to pay this amount by the Assistant Commissioner of Central Excise, Division-IV. The petitioner appealed this order, which was rejected by the Commissioner (Appeals). Subsequently, the petitioner appealed to the CEGAT, which set aside the Commissioner (Appeals) order. As the petitioner succeeded, the amount paid as duty should have been refunded. However, the refund application was rejected by the Deputy Commissioner of Central Excise, Division-IV, citing another pending demand against the petitioner.The petitioner filed an appeal against this rejection, and during the appeal process, it was found that the demand against which the refund was to be adjusted was invalid. Despite this, the appeal against the rejection of the refund application was dismissed. The petitioner contended that no amount was payable, and the refund should be paid with interest. The court noted that the refund was due and not liable to be adjusted against any other demand, directing the respondent authorities to pay the refund amount with interest. Interest was to be paid at the rate of 15% from 29th July, 1999, to 10th May, 2001, and at 9% from 11th May, 2001, until the refund payment date, within six weeks from the receipt of the court order.The court disposed of the petition, allowing it with no costs.