TMI Blog1989 (4) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... hen they must return the same and at the same time compensate the citizen for the unauthorise use of his money. A similar situation has arisen in the present application. 2.The facts being admitted need not be debated. The applicant M/s Redihot Electricals are manufacturers of domestic electrical appliances. These electrical appliances are chargeable to excise duty under Tariff Item No. 33-C. Ad valoram excise duty is chargeable on the value of appliances and the same is to be determined under Section 4(a) of the Central Excises and Salt Act, 1944. 3.The applicant had filed their list of prices of the various appliances with the excise authorities. That list stands approved. The goods were being cleared on payment of excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... late Collector, Central Excise." The petitioner was allowed costs which were assessed at Rs.2000/-. 5.Subsequent to the passing of the abovesaid order, the applicant vide its letter dated 25th January, 1986 requested the Assistant Collector to refund the excess duty paid. Their two subsequent reminders elicited no response. The personal visits to the office of the respondents, however, bore fruit. The Assistant Collector alongwith his letter dated 17th August, 1987 sent a cheque for Rs. 1,60,468.51 by way of refund of excise duty. This refund payment admittedly was made more than 2 years after the order of this Court. 6.However, as no interest on the amount refunded was paid, the applicants called upon the respondents to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out authority of law, and in the face of the conduct of the Department in not refunding what was due to the manufacturer, it cannot be appreciated as to why the manufacturer should be deprived of the interest from the date of payment till the actual date of repayment. 10.The applicants have asked for the payment of interest at the rate of 12 per cent and to support their submission, reliance is placed on the Judgment reported as Vijay Textiles, a partnership firm at plot No.4, Nirol, Abendaly v. Union of India (1979) Excise Law Times, 181, wherein under similar circumstances, the respondents were directed to pay interest at the rate of 12 per cent from the date of collection of the said amount till the date of actual repayment. Sim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e basis of the abovesaid reasoning, Gujarat High Court observed that in the instant case, claim for interest was not based on any agreement. There is no statute under which the mills are entitled to claim interest. The Court further observed that the respondent-mills are not entitled to claim interest on grounds of equity inasmuch as the case of the mills has failed on merits, the question of computing interest does not arise. 13.This Judgment is distinguishable from the facts of the case in hand. The applicant in this case has not invoked the provisions of the Interest Act. It is a clear case of unjust recovery and illegal retention of the hard-earned money of the private undertaking and/or of the little persons having meagre inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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