2003 (7) TMI 417

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....ginal) No. 46/96, dated 12-6-96 confirmed Central Excise duty of Rs. 2,73,076/- imposed a penalty of Rs. 50,000/- and confiscated the plant, machinery, building, etc. with an option to redeem the same on payment of redemption fine of Rs. 50,000/-. The Central Excise duty was debited by them vide RG-23A Part-II Sl. No. 109, dated 5-7-96 and penalty and fine were paid vide TR6 Challan Nos. 1/96-97 and 2/96-97, dated 5-7-96. Aggrieved by the said order they preferred an appeal before CEGAT and Hon'ble CEGAT vide Order No. 3218/97, dated 3-12-97 remanded the case to the jurisdictional adjudicating authority to decide the case afresh. Commissioner of Central Excise, Belgaum vide order (original) No. 16/2000, dated 25-9-2000 confirmed the demand ....

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....e the Tribunal. 3.           The appellant relied on the following case laws to claim interest on the amount deposited under Section 35F. (a)      The Supreme Court upheld Bombay High Court's ruling in Suvidhe Ltd. v. U.O.I. - 1996 (82) E.L.T. 177 (Bom.) that the amount deposited under Section 35F of the Central Excise Act, 1944 as a condition precedent to hearing an appeal does not bear the character of duty but has character only of security deposit and it ought to have been returned the day appeal is disposed of by authority and hence assessee was entitled to interest @ 15% per annum from 24-1-97 when CEGAT decided appeal to 15-9-2000, when the amount is actuall....

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.... as in order (original) No. 46/96. The appellant had paid the entire duty, fine and penalty at the time of filing an appeals before the CEGAT under Section 35 of the Central Excise Act, 1944. The appellant claimed interest on the amount deposited under Section 35F of the Central Excise Act, 1944 from the date of CEGAT's remand order dated 3-12-1997 till the date of re-adjudication order dated 25-9-2000. In the re-adjudication order, the original authority (Commissioner of Central Excise, Belgaum) appropriated the amount deposited by the appellants under Section 35F of the Central Excise Act, 1944. The appellants are aggrieved over the appropriation of the amount deposited under Section 35F against the sum due on account of the de novo adjud....