2008 (5) TMI 212

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....ire of thicker gauge. Though the appellants took a stand that the said activity does not amount to manufacture, they were paying duty under protest and after filing the classification list etc. They subsequently filed a refund claim in respect of duty paid under protest. The Asst. Commissioner sanctioned the said refund claimed vide his order dated 3-9-1998 but credited the same to consumer welfare fund. The assessee filed an appeal against the said order before Commissioner (Appeals), who vide his order dated 4-4-2000 set aside the above order and remanded the matter for fresh adjudication, after observing that duty collected by the assessee has been refunded to their customers by way of issuance of credit notes. The said order stands appe....

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....ire Mfg. Company. 5. As a result of passing of the order-in-appeal of Commissioner (Appeals) dated 1-5-2003, M/s. Orion deposited the refunded amount within a period of 3 months from the said date. However, in the meanwhile, show cause notice dated 7-1-2002 for recovery of erroneously granted refund was also issued by the Asst. Commissioner, which stands rejected by him vide his order dated 18-11-2003 appropriating the duty amount of Rs. 2,22,368/- paid by the assessee in terms of the Commissioner (Appeals)' order. In addition, he also confirmed interest amount of Rs. 92,718/- in terms of the provisions of Section 11AB of the Central Excise Act, 1944. The said order of Asst. Commissioner was confirmed by Commissioner (Appeals) vide his o....

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....order by the Revenue as also proceedings by way of issuance of show cause notice in terms of Section 11A were also initiated. The said order passed by Asst. Commissioner was reversed by Commissioner (Appeals) and the duty so refunded to the assessee was paid back to the Revenue in terms of the appellate authorities' decision within a period of three months from the passing of the said order. The Revenue claiming interest right from the date of refund is not justified inasmuch as refund was admittedly granted in terms of the Asst. Commissioner's existing order at the relevant point of time and there was no liability on the appellant to pay back the same to the Department. Their liability to pay back the refunded amount arose with the passing....