TaxTMI 
TaxTMI 
2013 (8) TMI 268
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.... "DTM"). On this machine of DTM, both DTY (dutiable) and TY (exempted) were being produced. 1.3 Some of entries in the register since were found cancelled, it was alleged that they pertained to imported Partially Oriented Yarn (POY). The explanation offered by the petitioners was not accepted and on the ground that the petitioners sold DTY under the guise of TY without payment of excise duty, the petitioners were directed to pay excise duty of TY on March 19, 1997 by six post dated cheques of Rs.20 Lacs to the Superintendent of Central Excise (Preventive) along with TR-6 challan which they did under protest. 1.4 A communication on October 29, 1999 was addressed by the petitioners that Rs.20 Lacs was paid under protest but they had not received TR-6 challan and they were not availed credit of Rs.20 Lacs in PLA. 1.5 On March 29, 2000, a show-cause-notice was issued to the petitioners for alleged removal of DTY, demanding excise duty of Rs.1,40,21,719/-. The petitioners, therefore, lodged a refund claim of Rs.20 Lacs paid under protest as there was no reference of this deposit in the show-cause-notice. This request of the refund claim wa....
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....ly, the respondents have contended that the Tribunal had allowed on March 28, 2003, the claim of the petitioners by holding that the same was not time barred, but had not granted interest on the said amount. Undisputedly, the said amount of Rs.20 Lacs has been refunded on February 4, 2004 and it is contended that interest, if any, is to be given, the same has to be from the date of order of CESTAT and not from the date of deposit. They sought to rely upon the decision of this Court reported in 2001 (127) ELT 329 (Guj.). 3. This Court has heard Ld. counsels of both the sides and examined the papers produced on record with their assistance. 4. It is apparent from the record that pursuant to the search conducted on March 8 and 9, 1997, the showcause- notice had been issued on March 29, 2000, demanding duty and imposition of penalty and in the order-in-original dated October 31, 2000, such demand of duty and penalty had been confirmed. The amount of Rs.20 Lacs had been deposited by the petitioners during the course of investigation towards the duty on Twisted Yarn before the Tribunal. The amount of predeposit was not insisted upon the by the Tribunal as the undertaking was given ....
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....hich the Finance Bill, 1995 receives the assent of the President, is not refunded within three months from such date, there shall be paid to the applicant interest under this section from the date immediately after three months from such date, till the date of refund of such duty." 8. Decision of this Court reported in 2010 (259) ELT 522 (Guj.) rendered in the case of Commissioner of Customs (Preventive) Vs. Ghaziabad Ship Breakers Ltd . is sought to relied upon by the petitioners' side. The issue before the Division Bench was of the refund of the amount during the pendency of the Appeal before the Supreme Court. The question was whether Section 27 of the Customs Act,1962 was applicable. The Court held that any amount deposited during the pendency of appeal before the High Court or the Supreme Court would also be by way of deposit under Section 129E of the Customs Act. After a detailed discussion, the Division Bench held thus: "7. However, if the person desirous of preferring appeal seeks waiver of the pre-deposit on the ground of undue hardship as contemplated under subsection (2) of section 129E, he is required to file an application seeking dispensation of suc....
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....tion arises of giving interest on the delayed refund of pre-deposit, as provided under the Draft Circular by CBEC & the payment of interest on such delayed refunds beyond three months would require the payment of interest and the same is to be 12% per annum. Period of three months commences from the date of final disposal of the dispute between the parties. The Circular:802/35/2004 dated 08.12.2009 if is also examined, it relates to return of deposit made as per the direction of the Tribunal and it is specified therein that the deposit needs to be returned within three months of the disposal of the appeal. 10. This Court, in the case reported in 2010 (259) ELT 522 (Guj.) in the case of Commissioner of Customs (Preventive) Vs. Ghaziabad Ship Breakers Ltd. , examined such question and held that the issue is concluded and for the reasons given in that case, appeal was dismissed. The Ahmedabad Bench of the Tribunal in the case of delayed refund, had considered the request of grant of interest by the Assistant Commissioner, while sanctioning the refund amount. The Commissioner (Appeals) also confirmed the said order of Assistant Commissioner(OIO) and the Tribunal had set aside both t....
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....of a period of three months from the date of receipt of application under sub-section (1) of Section 11B of the Act and that the said explanation would not have any bearing or connection with the date from which the interest under Section 11BB becomes payable. 13. The Court further held that "it is a well settled proposition of law that a fiscal legislation has to be construed strictly and one has to look merely at what is said in the relevant provision; there is nothing to be read in; nothing to be implied and there is no room for any intendment."The Court finally held thus": "15. In view of the above analysis, our answer to the question formulated in para(1) supra is that the liability of the revenue to pay interest under Section 11BB of the Act commences from the date of expiry of three months from the date of receipt of application for refund under Section 11B(1) of the Act and not on the expiry of the said period from the date on which order of refund is made." 14. On collective reading of these decisions and on close examination of the same, it can be noted that the question here is not of interest on refund of the duty amount but of the pre-deposit. The....