Case Law Details
Bata India Ltd Vs Commissioner Central Excise (Punjab and Haryana High Court)
Punjab and Haryana High Court held that the department is liable to make payment of interest after the expiry of three months from the date the refund of pre-deposit amount becomes due.
Facts- The Commissioner Central Excise had confirmed a demand of Rs.89,77,064/- and imposed a penalty of Rs.1,00,00,000/- on the appellant. The Tribunal while disposing of the interim stay application in the said case, directed the appellant to deposit a pre-deposit of Rs.20,00,000/- u/s. 35F of the Act. Later on, the Tribunal allowed the appeal and set aside the entire demand made by the respondent-authority.
Thereafter, the appellant filed a refund claim as per Section 35FF of the Central Excise Act. The Commissioner issued a show cause notice proposing to reject the refund claim on the ground that it had been filed after the expiry of one year from the order. The refund claim was rejected by the adjudicating authority. Appeal against the said order, filed by the appellant, was also dismissed passed by the Commissioner (Appeals) on the ground of limitation. It was held that the amount of pre-deposit was duty and therefore, the limitation u/s. 11B of the Central Excise Act, 1944 would apply.
The appellant challenged the said order by filing an appeal before the Tribunal, which was allowed to the extent of refund of pre-deposit of Rs.20,00,000/-. However, the interest was denied on the ground that a show cause notice was issued within three months of the receipt of the refund claim. Aggrieved by the said order, the appellant has filed the present appeal.
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