M/S Technical Construction Company vs. State Of U P And 2 Others

Held

The Court noted that Section 35-FF of the Central Excise Act, 1944, is explicit regarding the payment of interest on amounts deposited under Section 35F that are subsequently required to be refunded. The provision states that interest shall be paid on such amount from the date of payment of the amount till the date of refund. The Court directed Respondent No. 2 to pass an order in terms of Section 35-FF of the Central Excise Act, 1944, if such an order had not already been passed. If an order had been passed pursuant to the impugned show-cause notice, the Court directed that a copy of that order be provided to the petitioner forthwith if it had not been served. The Court did not expressly leave any issue undecided.

Facts

The petitioner, M/s Technical Construction Company, deposited Rs. 3,55,000/- as pre-deposit under Section 35-F of the Central Excise Act, 1944, for an appeal. The petitioner's appeal was allowed, making the deposited amount refundable. The petitioner applied for the refund along with interest under Section 35FF of the Central Excise Act, 1944. The Assistant Commissioner, Central Goods and Services Tax Division-I, Muzaffarnagar (Respondent No. 2), issued a show-cause notice dated 13.04.2021, proposing to pay interest only from the date of deposit (06.07.2015) until the date of the final order (11.09.2019). The petitioner sought quashing of this show-cause notice and a direction for payment of the full refund with interest.

Key Issues

1. Whether the show-cause notice dated 13.04.2021 issued by Respondent No. 2 is liable to be quashed, in light of the provisions of Section 35-FF of the Central Excise Act, 1944? (Question of law) 2. Whether the petitioner is entitled to a refund of Rs. 3,55,000/- along with interest as per Section 35FF of the Central Excise Act, 1944? (Question of mixed law and fact) Petitioner's arguments: The petitioner contended that Section 35-FF of the Central Excise Act, 1944, clearly mandates payment of interest on the refunded amount from the date of deposit till the date of refund. They sought quashing of the show-cause notice and a direction for the respondent to pay the refund with interest as per the law. Revenue's arguments: The judgment records no specific arguments from the respondent. The learned Senior Standing Counsel appeared for the respondent.