2006 (12) TMI 387

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....- towards duty and imposed a penalty of Rs. 32,00,000/-. Redemption fine of Rs. 10 lakhs was also imposed. The appellants approached CEGAT and CEGAT ordered to pre-deposit Rs. 50 lakhs on 6-10-99. In the final order dated 22-12-2000, CEGAT confirmed an amount of Rs. 15,02,430/-. Consequent to the CEGAT's Order, the appellants filed a refund claim for the pre-deposit of Rs. 50 lakhs. They also by another letter dated 30-11-02 requested the authority to adjust an amount of Rs. 15,02,430/- confirmed by CEGAT. The Assistant Commissioner while sanctioning the refund claim apart from adjusting the duty amount of Rs. 15,02,430/- adjusted another sum of Rs. 14,19,279/- towards interest on the said duty. The appellant was aggrieved over the decision....

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.... (Appeals), the appellants have come before this Tribunal for relief. 3. Shri V.J. Sankaran learned advocate appeared for the appellants and Shri R.K. Singla learned JCDR appeared for the revenue. 4. Learned advocate urged the following points. (1)     Learned Advocate urged that based on the apex court decision dated 8-12-04 (sic) (2-12-2004) relating to M/s. ITC Ltd. & Others [2005 (179) E.L.T. 15 (S.C.)] the following position emerges. (a)      The amount should be returned within 3 months from the passing of the final order, be it a remand order or an order of final disposal, of the dispute. (b)      Interest should be paid at the rate of 12% ....

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....    That an amount can be paid within three months of the order. (2)      On default, an interest of 12% on the amount reckoning from the first day after completion of three months. (3)      The Commissioner (Appeals) merely followed the findings of the Assistant Commissioner ignoring the binding decisions of the Hon'ble Apex Court in M/s Tata SCL and M/s Nelco. Further the decision of this bench in Lucky Exports v. CC, Bangalore - 2005 (183) E.L.T. 332 (Tri.-Bang.) was relied on. (4)     In the present case, interest on Rs. 50 lakhs was likewise reckonable and grantable from the first day after completion of three months till the date of payment t....

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....e than the duty liability confirmed by CEGAT was with Revenue. Therefore, there is much force in the contention of the party. Coming to the second issue of the entitlement of the appellant for interest on pre-deposit amount, the issue is squarely covered by the various Supreme Court decisions cited by the appellant in particular, the ITC decision cited (supra). It may be appreciated that the Board also has issued a Circular dated 8-12-04 wherein instructions have been issued for refund of pre-deposit within three months from the date of Tribunal's order. There is no need for the appellant to file any refund claim. Therefore, the Commissioner (Appeals) has clearly erred in denying the claim of the appellant for interest on the ground that....