2001 (9) TMI 123

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....cise Act, 1944 at the instance of Union of India seeking reference as follows : "Whether the duty of excise encashed from bank guarantee can be refunded to assessee in cash when the assessee had passed on the incidence of such duty to any other persons ?" 2. It appears that the respondent company M/s Grasim Industries Ltd. (White Cement Division) is engaged in manufacture of white cement. The pl....

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.... sub-heading 2502.90. The writ petition was dismissed on the ground of alternate remedy. While dismissing the writ petition, this Court directed the assessee to keep the bank guarantee alive till the matter is decided by the Commissioner (Appeals). The appeal was dismissed by the Commissioner of Central Excise (Appeals). The department encashed the bank guarantee of Rs. 88,00,000/- just after the ....

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.... Court. It is held by the Apex Court in Oswal Agro Mills case (supra) that furnishing of a bank guarantee for all or part of the disputed excise duty pursuant to an order of the court is not equivalent to payment of excise duty. It is also held that Section 11B applies when an assessee claims refund of excise duty. A claim for refund is a claim for repayment. It presupposes that the amount of the ....