TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Court grants interest on redeemed amount at 17.5% rate despite respondents' objections.</h1> <h3>ELEPHANTA OIL AND VANASPATI INDUSTRIES LTD. Versus UNION OF INDIA</h3> The court granted the petitioner's claim for interest on the redeemed amount at a rate of 17.5% per annum from the date of deposit until the refund. The ... Refund - Interest - Unjust enrichment Issues:1. Claim for interest on redeemed amount.2. Entitlement to interest post refund.3. Application of Central Excise & Customs Laws (Amendment) Act 1991.4. Precedent cases on awarding interest.Detailed Analysis:1. The petitioner sought a direction for payment of interest at 17.5% per annum on the redeemed amount of Rs. 1,09,60,000 from the date of deposit until the refund. The petitioner imported goods and deposited the redemption fine after an order of redemption was issued by the Collector of Customs. Subsequently, the Tribunal allowed the petitioner's appeal, leading to the refund of the redemption fine by the respondents through two cheques. The petitioner argued that as they had borrowed the amount from a bank, they were entitled to interest similar to the rate they were liable to pay the bank.2. The petitioner relied on legal precedents to support their claim for interest post-refund. They referenced a Bombay High Court judgment and an unreported Calcutta High Court judgment where interest was awarded on refunded amounts. Additionally, the petitioner cited an interim order by the Supreme Court granting interest in a specific case. The respondents contended that the petitioner should not be entitled to interest post-refund based on the Central Excise & Customs Laws (Amendment) Act 1991, which prohibits such claims to prevent unjust enrichment. However, the court noted that the refunded amount had been returned before the Act came into force and upheld the petitioner's entitlement to interest.3. The court referred to a Division Bench judgment where interest was awarded to the Union of India in a similar case of excise duty. The court emphasized that the petitioners in that case were not allowed to withhold collected duty and were liable to pay interest on the amount utilized for business purposes. Based on this precedent and the circumstances of the present case, the court allowed the writ petition and directed the respondents to pay interest at 17.5% per annum on the redeemed amount within four weeks from the judgment date.4. The judgment, delivered by the court, granted the petitioner's claim for interest on the redeemed amount, emphasizing the petitioner's right to receive interest at the rate of 17.5% per annum from the date of deposit until the refund. The court's decision was based on the petitioner's loan arrangement with a bank and the legal precedents cited regarding the award of interest on refunded amounts in similar cases.
TaxTMI 
TaxTMI 
