Heard both.
2. The petitioner filed this writ petition seeking to quash the proceedings of the fourth respondent dated 15.2.2005, which is a demand calling upon the petitioner to pay a sum of Rs.5,11,018/- towards interest, as the petitioner did not remit the central excise duty of Rs.2,27,724/- within time as demanded in Order-in-Original No.102/95 dated 12.9.1995.
3. The petitioner's case is that the fourth respondent has no jurisdiction to raise a demand for payment of interest, as the provision, which is enabling recovery of interest, namely
Section 11AA of the Central Excise Act, 1944, was inserted with effect from 26.5.1995 by Finance Act, 22/1995 and that such provision can have only prospective effect.
4. In turn, the learned Senior Panel Counsel submits that the plea raised by the petitioner is absolutely without any basis. That apart, the petitioner defaulted in payment of duty and they had cleared the duty in instalments much after the provision was introduced in the Statute.
5. On perusal of the material papers placed before this Court, it is seen that the petitioner had given various representations and also sought for a working sheet vide representation dated 19.3.2005. The third respondent, vide reply dated 22.3.2005, furnished the entire details and directed the petitioner to pay the interest amount.
6. Considering the objections raised by the petitioner and the fact that this writ petition is pending from 2005 and an order of interim stay is in force and also the fact that no counter has been filed by the respondents so far, this Court is of the view that this is a fit case where the Authority concerned can be directed to adjudicate the petitioner's objections and then pass a speaking order and initiate recovery proceedings.
7. Accordingly, the writ petition is disposed of with a direction to the petitioner to submit their objections to the impugned demand before the fourth respondent within a period of 15 days from the date of receipt of a copy of this order. On receipt of the objections, the fourth respondent shall consider the same on merits and pass a speaking order in accordance with law. No costs. Consequently, the connected WMP is closed.
09.11.2017 Internet : Yes To
1.The Secretary to Union of India, Department of Finance & Commerce, New Delhi.
2.The Commissioner of Central Excise, Race Course Road, Coimbatore-18.
3.The Deputy Commissioner of Central Excise, IV Division, Coimbatore.
4.The Deputy Commissioner of Central Excise (Tax Recovery Cell), Race Course Road, Coimbatore-18.
5.The Superintendent of Central Excise, Range IV D, Range, No.18, A.K.Ramasamy Nagar, Sulur, Coimbatore-641402.
RS T.S.SIVAGNANAM,J RS WP.No.10914 of 2005& WMP.No.11877 of 2005 09.11.2017