2000 (2) TMI 100

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....ent had levied Central Excise duty to the tune of Rs. 2,00,240.89 on the Drills manufactured by the petitioner No. 1 during the period between June 1978 and November 1979. The petitioner preferred claim before the Assistant Collector, Customs & Central Excise, Indore under Section 11B of the Central Excises & Salt Act, 1944 (for short 'the Act') for refund of the aforesaid duty as according to the petitioners the duty was wrongly levied on it. The claim was rejected by the Assistant Collector vide his order dated 30-9-1980. Aggrieved by this order the petitioners preferred an appeal to the Collector of Customs & Central Excise (Appeals). The said appeal (No. 469/80) was allowed by the Collector and it was held that the duty was levied illeg....

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....ongly levied) from the date immediately after the expiry of 3 months from the date of receipt of application for refund till the date of refund of such duty. There is no doubt that this provision is not retrospective in nature. Nevertheless it is remedial provision which in the considered opinion of this Court merely recognises the well settled existing principle of equity that when a party has suffered any loss on account of wrongful withholding of any amount due to him by the other party, the latter who has drawn undue advantage by withholding the said amount should compensate the former. 7In. Elpro International Ltd. & Ors v. Jt. Secretary, Govt. of India [1985 (19) E.L.T. 3 (SC)] the apex Court has held that :  "Since in the ....