9911796707
TMI Blog1994 (2) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... e classification of toilet soap for the purposes of excise duty. Interim orders were passed in the appeal whereby stay of recovery of excise duty pursuant to the impugned order of CEGAT was granted on condition that 50% thereof was paid by the appellants to the excise authorities within 3 months and for the balance 50% the appellants furnished bank guarantees. The appeal was, ultimately, allowed. This Court then stated that it "did not propose to go into the question of the refund as it is matter to be dealt with by the authorities concerned in accordance with law. The appellants shall have to apply for refund and the authorities shall be required to deal with it in accordance with the law. It is for the authorities, therefore, to decide th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bank a demand, pursuant to which the bank guarantees were encashed on 17th November, 1993. By our order of 26th November, 1993, allowing the civil appeal as afore-stated, we held that the direction issued by the High Court in regard to the extension of the bank guarantees was bad because the bank guarantees were not the subject matter of the application for refund pending before the excise authorities. Once this Court had decided the earlier appeal against the excise authorities they did not have the power to get the bank guarantees encashed. Accordingly, we directed the excise authorities to repay the amounts collected upon the bank guarantees to the bank. 5. Section 11B of the Act provides that "a person claiming refund of any duty o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eposited in court stated sums and for further clearances gave bank guarantees for the amounts of the disputed duty. By a subsequent order the excise authorities were permitted to withdraw the amounts deposited by the assessee in court. The writ petition filed by the assessee succeeded, and it applied to the High Court for refund of the amounts which had been deposited by it and which had been withdrawn by the excise authorities. The High Court allowed the application. The excise authorities filed an appeal in this Court against the High Court's order. This Court held that under the provisions of the Act a duty was cast upon the Assistant Collector of Excise to consider the question. It could not be disputed that the amount which was deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the excise duty has been paid over to the excise authorities. It is then that the excise authorities would be required to repay or refund the excise duty. 10. The question, therefore, is whether it can be said that the furnishing of a bank guarantee for all or part of the disputed excise duty pursuant to an order of the court is equivalent to payment of the amount of excise duty. In our view, the answer is in the negative. For the purposes of securing the Revenue in the event of the Revenue succeeding in proceedings before a Court, the Court, as a condition of staying the demand for the disputed tax or duty, imposes a condition that the assessee shall provide a bank guarantee for the full amount of such tax or duty or part thereof. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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