TMI Blog2007 (7) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... were availing the benefit of exemption Notification No. 1/93-C.E., dated 28-2-93 as amended. The Central Excise officers visited the unit and in view of the fact that the appellant's unit was registered with the Directorate General of Technical Development (DGTD) informed them that they are not entitled for the benefit of SSI Notification. They were compelled to pay an amount of Rs. 6,25,000/- on 9-5-1994. Later, the Deputy Commissioner confirmed the amount. The appellants approached the Commissioner (Appeals) who upheld the order of the Original Adjudicating Authority. Then the appellant approached the CEGAT. The CEGAT in its order No. 1330/2002 dated 11-10-2002 [2003 (152) E.L.T. 71 (Tribunal)] allowed the appeals. The appellants then fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... J546) (Guj.) (iii) Vijay Textiles v. Union of India - 1979 (4) E.L.T. (J181) (Guj.) (iv) Adarsh Metal Corporation v. Union of India - 1993 (67) E.L.T. (483) (Raj.) (v) Assistant Commissioner of Central Excise v. Calcutta Chemical Company Ltd. - 1992 (62) E.L.T. (511) (Cal.) (vi) East Anglia Plastics (I) Ltd. v. Assistant Collector of Customs - 1990 (50) E.L.T. 508 (Cal.) He submitted that if interest is not granted on the amounts retained by the Department illegally, any Departmental Officer can issue a show cause notice to any person demanding duty even on non-excisable goods and retain that money till the demand is set aside by the Tribunal or by higher Authorities. 4. The learned JDR urged that consequent to CEGAT's orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim arising out of order passed in appeal and the state is liable to refund the amount with interest at the rate of 12%. The Hon'ble Calcutta High Court, in the case of Calcutta Chemical Company Ltd. (cited supra), has held that the department is liable to pay interest for unauthorized collections. The Hon'ble Calcutta High Court, in the case of East Anglia Plastics Ltd. (cited supra), has awarded interest at the rate of 10% for the use of money collected without authority of Law. The ratio of the above case laws is clearly applicable to the present case. Therefore, we allow the payment of interest from the date of payment of the duty by the appellant to the department till the date of payment of refund at the rate as notified for interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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