TaxTMI 
TaxTMI 
2024 (10) TMI 1178
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....raw materials and finished goods etc. The said unfortunate incident had been duly intimated to the authorities concerned, subsequent where to an application dated 06.07.2010 had been filed for remission of Central Excise duty and Customs duty on plant and machinery, stock etc. Several correspondences were exchanged from time to time between the appellant and the customs authorities in relation to the said remission claim. Under cover of a letter dated 16.11.2010, the appellant duly provided the requisite information and details to the revenue authorities, However, vide an Order-in-Original dated 09.3.2011 the appellant's claim for remission in relation to plant and machinery, stock etc. was rejected on the premise that liability had arisen on account of noncompliance with the notification Nos. 52/2003-Cus dated 31.03.2003 and 22/2023-CE dated 31.03.2003, where under the appellant-EOU had procured duty-free raw materials as well as plant and machinery. As regards the raw materials damaged/destroyed by fire, it had been observed that the appellant had failed to produce evidence regarding their actual receipt and proper accountal. Copy of the said Order-in- Original dated 09.3.201....
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....39;s favour, the appellant filed a claim of refund of pre- deposit with interest thereon as per the provisions of the Excise Act. A copy of the appellant's letter dated 16.08.2023, where under it requested for refund of pre-deposit along with interest. (viii) The Assistant Commissioner, CGST & C. Ex. Khardah Division, while adjudicating the matter, passed a purported Order-in-Original dated 04.10.2023 and sanctioned refund of pre-deposit of Rs. 16,18,165/- without interest. Copy of the said Order-in-Original bearing No. AC- 10/R/2023-24 dated 04.10.2023. 2.1 Being aggrieved by and dissatisfied with the aforesaid Order-in- Original dated 04.10.2023, insofar as the same related to the denial of interest on refund of pre-deposit, the appellant preferred an appeal before the Commissioner (Appeals-I), CGST & CX, Kolkata. Copy of the said appeal filed before the appellate authority. 2.2 The appellant appeared for personal hearing before the appellate authority and further made submissions in support of its claim for payment of interest on the sanctioned pre-deposit of Rs. 16,18,165/-. The Commissioner of CGST& CX., Appeals-I, Kolkata, however, rejected the appellant's appeal ....
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....has relied upon the law laid down by the Apex Court in Sandvik Asia Ltd. v. CIT, Pune - 2007 (8) S.T.R. 193 (S.C.) wherein it was held that :- "45. The facts and the law referred to in paragraph (supra) would clearly go to show that the appellant was undisputably entitled to interest under Sections 214 and 244 of the Act as held by the various High Courts and also of this Court. In the instant case, the appellant's money had been unjustifiably withheld by the Department for 17 years without any rhyme or reason. The interest was paid only at the instance and the intervention of this Court in Civil Appeal No. 1887 of 1992, dated 30-4-1997. Interest on delayed payment of refund was not paid to the appellant on 27-3-1981 and 30-4-1986 due to the erroneous view that had been taken by the officials of the respondents. Interest on refund was granted to the appellant after a substantial lapse of time and hence it should be entitled to compensation for this period of delay. The High Court has failed to appreciate that while charging interest from the assessee, the Department first adjusts the amount paid towards interest so that the principal amount of tax payable remain outstanding ....
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....muneration for the injury directly and proximately caused by a breach of contract or duty; remuneration or wages given to an employee or officer." 47. There cannot be any doubt that the award of interest on the refunded amount is as per the statute provisions of law as it then stood and on the peculiar facts and circumstances of each case. When a specific provision has been made under the statute, such provision has to govern the field. Therefore, the Court has to take all relevant factors into consideration while awarding the rate of interest on the compensation. 48. This is the fit and proper case in which action should be initiated against all the officers concerned who were all in charge of this case at the appropriate and relevant point of time and because of whose inaction the appellant was made to suffer both financially and mentally, even though the amount was liable to be refunded in the year 1986 and even prior to. A copy of this judgment will be forwarded to the Hon'ble Minister for Finance for his perusal and further appropriate action against the erring officials on whose lethargic and adamant attitude the Department has to suffer financially. 49. By allowing ....