BALIA, J. - (1.) THE question in this writ petition is about the claim of interest on the refund of Excise Duty, paid in excess by the petitioner, which has been ultimately found to be payable to the petitioner and not liable to be transferred to Consumer Welfare Fund under Sub-sec. (2) of Sec. 1-B of the Central Excise Act. 1944.
(2.) JOURNEY to this lis started with making of two applications by the petitioner on 3. 1. 89 and 21. 4. 89 laying claim to refund of Rs. 1,85,93,463/- and 20,29,894. 12 paisa respectively. The Excise Duty paid by the petitioner on the clearance of its product was at full rate of Rs. 205 per metric ton between 1. 5. 88 to 21. 11. 88 under protest. The petitioner was claiming entitlement to rebate @ Rs. 50 per metric ton on full rate of duty as a new industrial undertaking under notification no. 36/87 dated 1. 3. 87. The application was initially rejected by the Excise Commissioner, Central Excise by not accepting the claim of the petitioner's to be a new industrial undertaking. By order dated 13. 5. 91, the Commissioner, (Appeals) decided the case in favour of the petitioner. This led to a request for refund of the aforesaid sum vide application dated 15. 2. 92. A prayer was also made that the petitioner may be permitted to take credit of the aforesaid amount alongwith interest due on the amount claimed as refund in its future clearance. However prayer was not granted. The order of the Commissioner, (Appeal) dated 13. 5. 91 was subjected to appeal by the Revenue before the CEGAT. The CEGAT upheld the claim of the Assessee petitioner vide its order dated 15. 3. 96 and dismissed the appeal. The order of the CEGAT upholding the claim of the assessee as a new Industrial undertaking and its entitlement to rebate and liability to pay Duty @ 155 per metric ton only instead of Rs. 205/- per metric ton for relevant time was accepted by the Revenue.
(3.) STILL the refund was not to be made. Instead a show cause notice was issued to the petitioner in the first instance for transferring the amount of refund Rs. 1,85,93,463/- to the Consumer Welfare Fund under Sub-Sec. 2 of Sec. 11-B. This led to filing of D. B. C. Writ Pet. No. 629/2000 challenging the constitutional validity of Sec. 11-B of the Central Excise Act, 1944. At the hearing of the said writ petition challenge to the constitutional validity of Sec. 11-B of the Central Excise Act was given up. It was also stated before the court that the order directing the deposit of the aforesaid sum to the Consumer Welfare Fund has been subjected to appeal before the Commissioner (Appeals) challenging the finding. In view of the aforesaid circumstances the said writ petition was disposed of with the direction that the pending appeal before the Commissioner (Appeals) Central Excise Jaipur or his successor in office shall be decided as far as possible within the period of six months from the service of the order. The amount claimed as refund was directed to be deposited with any nationalised bank, if the amount has already not been transferred to the Consumer Welfare Fund. The amount so deposited was to be dealt with according to the final outcome of the appeal. We are informed that inspite of the aforesaid direction no amount was deposited by the respondents in the interest bearing account with any bank. However, the same was not transferred to Consumer Welfare Fund also. ;