ORDER
P.K. Das, Member (J)
1. The relevant facts of the case, in brief, are that the appellants are engaged in the manufacture of cotton yam and cotton fabrics classifiable under Chapter Heading 52 of the Central Excise Tariff Act, 1985. By Notification No. 226/77, dated 15-7-77 exemption from payment of duty on cotton yarn used captively in the manufacture of cotton fabrics was withdrawn with effect from midnight of 14/15-7-77 and duty on yarn was made leviable at spindle stage. Show cause notice dated 12-1-78 was issued demanding duty in respect of yarn content contained in loose cloth lying in stock on the midnight of 14/15-7-77. The said demand was adjudicated by the adjudication order dated 28-2-1983 confirming demand of duty of Rs. 2,31,666/-. The appellant filed appeal along with stay application before the Commissioner (Appeals). They deposited the entire amount of duty during the month of August and September, 1983 as pre-deposit. The said appeal was decided by the Commissioner (Appeals) vide Order-in-appeal No. IND-I/497/2003, dated 29-8-2003. The appellant filed refund claim for Rs. 2,31,666/- on 12-11-2003. They also claimed interest. The refund amount was paid to them on 29-2-2004. Thereafter, they claimed payment of interest on the said amount. The adjudicating authority observed that the time limit prescribed under Section 11B of the Central Excise Act, 1944, is not applicable in this case as the amount refundable was pre-deposited under Section 35F of the Act for availing the right of appeal and hence, he did not sanction any interest. In the impugned order, the Commissioner (Appeals) held that interest will be payable from 29-8-2003 onwards up to the date of payment of refund (i.e. 19-2-2004). The rate of interest would be 6% per annum as in the case of Section 1 IBB of the Central Excise Act, 1944.
2. Heard both sides and perused the record.
3. The learned Advocate on behalf of the appellant submits that interest is payable from the date of deposit i.e. August and September, 1983 till the date of payment. He relied upon the following case laws:
1. Union of India v. Nirlon Synthetic Fibres & Chemicals & Co. >
2. J.M. Industries v. Union of India 2002 (150) E.L.T. 29 (Guj.).
4. The learned DR on behalf of the respondent submits that the Commissioner (Appeals) rightly allowed interest from the date of finality of the Order-in-appeal dated 12-7-2004. He relied upon the decision of the Hon’ble Calcutta High Court in the case of Eastern Coils Private Ltd. v. CCE, Kolkata-1 . He submits that the decision of the Hon’ble High Court was upheld by the Hon’ble Supreme Court as .
5. After hearing both sides and on perusal of the record, I find that the Assistant Commissioner of Central Excise by Order-in-original dated 28-2-1983 confirmed the demand of duty. The said matter reached finality vide Order-in-Appeal No. IND-I/497/2003, dated 29-8-03 wherein the Commissioner (Appeals) allowed the appeal of the appellant. Therefore, the appellant was entitled to get refund of the pre-deposit amount after the date of the said Order-in-appeal. The appellant filed the refund claim on 12-11-2003. I find that Hon’ble High Court of Calcutta in the case of Eastern Coils Private Ltd. v. CCE, Kolkata-1 (Supra) held that payment of interest on the pre-deposit will be calculated from the date of the last order. It has further been held that such order will be the date of the order of the CEGAT or any further order finally passed by any Court whereunder order of CEGAT was challenged. I find that in this case, the order dated 29-8-2003 of the Commissioner (Appeals) reached its finality. As such, the Commissioner (Appeals) rightly sanctioned interest from the date of the order-in-appeal. The judgments relied upon by the appellant are in connection with the Writ Petition under Article 226 of the Constitution of India and the facts of the said cases are not applicable herein. Accordingly, I do not find any reason to interfere with the order of the Commissioner (Appeals). The appeal is rejected.
(Dictated and pronounced in open court).