CCE Vs. STARWIRE (I) LTD. AND ANR.

JUDGEMENT

(1.) IN all these appeals of the Revenue, a common issue is involved. The amounts pre -deposited by the respondents pursuant to orders passed by this Tribunal under Section 35F of the Central Excise Act were, later on, refunded to them by the department after the appeals of the respondents were allowed by the Tribunal. The respondents subsequently raised a claim for interest on the amounts refunded. They claimed interest (r) 15% from the dates of final orders passed by the Tribunal. The original authority rejected the claim for interest, altogether. In the appeals preferred against the decision of the original authority, the Commissioner (Appeals) granted relief to the parties. Hence the present appeals of the Revenue.

(2.) Ld. Commissioner (Appeals) has allowed the claim for interest @ 15% by relying on the Bombay High Court's decision in Suvidha Ltd. v. Union of India [1996 (82) ELT 177 (Bom)] and the Madras High Court's decision in CCE v. Calcutta Chemicals Co. Ltd. [2001 (133) ELT 278 (Mad)). On a perusal of the judgments of the Bombay and Calcutta High Courts, the binding effect whereof has not been disputed before me, I find that the decision taken by ld. Commissioner (Appeals) is well -founded and the same does not call for any interference. The grounds raised in these appeals of the Revenue do not appear to be tenable in the light of the pronouncements of the two High Courts. On the other hand, ld. Consultant for the respondents, apart from relying on the High Courts' judgments, places on record a copy of Final Order No. A/1197/2002/NB(SM) dated 13.9.2002 passed by this Tribunal in Appeal No. E/1439/02/NB(S) \CCE, Delhi v. M/s. Lauls Ltd.) wherein, in identical facts and circumstances, interest @ 15% p.a. was allowed on refunded deposit of amount from the date of the final order of the Tribunal passed in the appeal in which the pre -deposit had been made. I find that this Bench has considered the judgments of the Bombay High Court and held to the above effect. I follow the ratio of the final order dated 13.9.2002 and affirm the orders of the Commissioner (Appeals). The Revenue's appeals stand rejected.