TMI Blog2007 (11) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... Per: Mr. M. Veeraiyan, Member (T)]-1. This is an appeal against the order of the Commissioner (Appeals) No. 411/2005(411-KDL)Cus/Commr(A)/ AHD, dt.30.12.2005. 2. Heard both sides. 3. The relevant facts, in brief, are as follows: a) In the course of hearing of an appeal, the Tribunal vide its order dt.19.2.92 on the stay petition, directed pre-deposit of Rs.10 lakhs towards penalty against a penalty of Rs 50 lakhs imposed by the Commissioner of Customs. The entire penalty was set aside by the Tribunal by its final order dt.13.5.94. b) The appellant filed a claim for return of the pre-deposit in Jan '97; after a lot of litigation, it was refunded by a cheque dt.9.7.02; the appellant claimed interest on the pre-deposit of pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gly applied the decision of the Larger Bench in case of Advance Mechanical Works Vs. CCE Rajkot - 2005 (182) ELT 460 (Tri-LB), to his case. The said case was dealing with interest payable on the deposit of redemption fine, when in the appellate proceedings, the confiscation was set aside and redemption fine was to be refunded. In that case, the claim for interest was for the period when the order of confiscation subsisted against the assessee. c) He also relied on the judgment of the Hon'ble Supreme Court in case of ITC Ltd. -2005 (179) ELT 15 (SC), wherein payment of interest on delayed refund @ 12% p.a. commencing from 3 months after final disposal of the dispute was ordered after taking note of the draft circular of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epartment and the provisions for claim for refund by the assessee from the department when there are excess payment or payment made when not required are reciprocal provisions . 6.2 The interest, as rightly pointed out by the learned advocate, is somewhat compensatory in nature. However, the interest becomes demandable by the department and payable by the department in terms of specific provisions of statute. 6.3 The provisions relating to confiscation and penalty are penal in nature. If a person, on whom a penalty is imposed, does not pay immediately and pays, say after a few years, as of now, the department has no powers to collect of interest on such delayed payment of penalty. Reciprocally, penalty imposed on a person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s paid in pursuance of an adjudication order which was set aside later, can't be maintained. The present appellant's claim for interest on the redemption fine therefore cannot be upheld. 5. We observe that there is no conflict between the decision in Sheela Foam and Orient Enterprises. The latter was dealing with the interest on redemption fine to be refunded while the former was concerned about interest on deposit of duty. We conclude that no interest is payable on redemption fine and penalty while refunding the same in pursuance of an order of a higher judicial forum as observed by the Supreme Court in Orient Enterprises' case. The case of interest on consequential refund of duty is covered by the decision in Sheela Foam ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
