Delhi High Court
Munch Food Products Ltd. vs Sk Sheoran on 19 January, 2015
Author: Suresh Kait
$~6
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Judgment delivered on: 19th January, 2015
+ CONT.CAS(C) NO.433/2012
MUNCH FOOD PRODUCTS LTD. ..... Petitioner
Represented by: Mr.Rajendera Dutt,
Advocate.
Versus
SK SHEORAN ..... Respondent
Represented by: Mr.Satish Kumar, Senior
Standing Counsel with
Ms.Shruti Yadav, Advocate
with Respondent in person.
CORAM:
HON'BLE MR. JUSTICE SURESH KAIT
SURESH KAIT, J. (Oral)
1. The grievance of the petitioner is that the order dated
02.03.2012 passed by the Division Bench of this Court has not been
complied with in as much as the entire amount of duty alongwith
interest payable in terms of the rules has not been actually disbursed
to the petitioner. It has also been pointed out that the aforesaid
amount was to be paid within six weeks from the date of the order,
i.e., 02.03.2012.
2. Vide order dated 22.07.2014, the petitioner was directed to
prepare a calculation sheet indicating the amount due and payable
to him by way of duty and interest, if any, and the provisions
thereof. The respondent was also directed to check and verify the
said calculation sheet and file a response thereto by way of a short
affidavit along with their calculation sheet.
3. Further directed that Dr.S.K.Sheoran, Assistant
Commissioner, Central Excise, Division-III, shall remain personally
present in the Court.
4. Accordingly, the petitioner has filed its calculation sheet,
whereby submitted that in terms of Section 11 BB of the Central
Excise Act, 1944 (hereinafter to be referred as 'the Act'), interest
amount of Rs.3,31,077/- is due towards the respondent Department.
5. The respondent has filed reply thereto along with his
affidavit, whereby stated that entitlement of the interest is governed
by Sections 11B and 11 BB of the Act and while applying the
provisions thereof to the facts of the present case, the duty becomes
refundable pursuant to final order dated 27.03.2002 passed by the
Custom Excise & Service Tax Appellate Tribunal, (for short
'CESTAT'), New Delhi, therefore, as per Section 11B(1) of the
Act, the relevant date for the purpose of refund in the instant case is
27.03.2002. The petitioner had filed application dated 18.02.2003
claiming refund of Rs.2,86,074/-. In terms of provisions of Section
11BB of the Act, interest becomes due for the period beyond three
months from the date of filing of refund application by the
petitioner. So the interest in the present case becomes payable with
effect from 18.05.2003.
6. The fact remains that in compliance of the order dated
02.03.2012 passed by this Court, the respondent Department had
sanctioned refund of Rs.4,40,742/- including interest amount of
Rs.1,54,668/- to the petitioner vide Order-in-Original dated
12.04.2012. As per the respondent, the correct interest amount on
the date of sanctioning of refund on 12.04.2012 comes to
Rs.1,54,668/-.
7. Moreover, in compliance of the order dated 02.03.2012, the
sanctioned amount was adjusted towards the confirmed demand of
the petitioner in compliance of mandate of Section 11 of the Act, as
there was no stay against the confirmed demand at the time of
adjustment and recovery of confirmed demand was free from any
restraints. The demand of Government dues, against which the
refunded amount adjusted, was confirmed against them vide Order-
in-Original dated 18.12.2002 and again on 14.05.2004 and
11.11.2011 in a de novo proceedings. The learned CESTAT vide
final order dated 02.04.2014 has set aside the order in appeal dated
11.11.2011 passed by the Commissioner (Appeals), Central Excise,
Delhi-I and thus, allowed the appeal of the petitioner with
consequential relief.
8. Initially the respondent Department issued the Cheque
No.706200 dated 01.07.2014 for an amount of Rs.5,02,227/- in
favour of the petitioner, however, the same was cancelled and
thereafter, a fresh cheque bearing No.559226 dated 01.10.2014 for
the aforementioned amount was issued, which has been encashed
by the petitioner. Thereafter, the petitioner had challenged the
Order-in-Original dated 01.07.2014 before the First Appellate
Authority, i.e., Commissioner (Appeals), which has been allowed in
favour of the petitioner by recording that the petitioner is entitled
for interest with effect from 30.10.1995.
9. Learned counsel appearing on behalf of the respondent, on
instructions from Dr. S.K. Sheoran, Deputy Director, submits that
the said order is under examination before the respondent
Department.
10. In view of the facts recorded above, since the respondent
Department is duty bound to pay the interest amount in favour of
the petitioner, therefore, three months time is granted to the
respondent Department to comply with the order passed by the
Commissioner (Appeals), failing which the petitioner shall be
entitled for an amount of Rs.50,000/- in addition to the interest due.
11. In view of the above, the petition is disposed of.
12. A copy of this order be given dasti to the learned counsel for
the parties.
SURESH KAIT
(JUDGE)
JANUARY 19, 2015
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