Narayan Agro Foods Ltd. (Earlier known as RMI Foods Ltd.) vs CCE, Meerut-II

Brief facts of the case are that on 20.01.1999, the appellant had filed refund claim for Rs.16,23,564/- on the ground that finished goods removed to

its Madras Depot on payment of duty were found substandard, and as such, the same were returned to the factory and upon re-packing, the same

were cleared on payment of Central Excise Duty. Since on the same consignment, Central Excise Duty was paid twice, the appellant filed the refund

claim under the provisions of Rule 173L of the erstwhile Central Excise Rules, 1944. The refund application was rejected by the adjudicating authority

vide order dated 05.07.1999, which was upheld by the Commissioner (Appeals) vide order dated 25.02.2001. In appeal, this Tribunal vide order dated

01.03.2012 has allowed the appeal in favour of the appellant with consequential relief. As a consequence of above favourable order, the appellant vide

its letter dated 23.07.2002 filed fresh refund claim before the Jurisdictional Central Excise Authorities.

1.1 Feeling aggrieved with above final order dated 01.03.2002 of the Tribunal, the Department filed a reference application before Hon’ble High

Court of Allahabad and also filed a stay application before this Tribunal for stay of operation of the final order dated 01.03.2002. This Tribunal vide

Misc. Order dated 12.03.2003, had rejected the stay application filed by the Department. Against the rejection of the stay application, the Department

filed writ petition before the Hon’ble High Court of Allahabad. In entertaining the Writ Petition, the Hon’ble High Court has issued the

following directions:-

“Considering the facts and circumstances of the case, it is directed that the petitioners shall pay the amount under impugned order of the

Tribunal in question and respondent No.2 shall be entitled to withdraw the amount on furnishing adequate security to the satisfaction of the

Customs Excise and Gold (Control) Appellate Tribunal, respondent No.1.â€​

1.2 The Writ Petition was finally disposed of by the Hon’ble High Court vide judgement dated 20.11.2004 in line with the above Interim Order

dated 23.05.2003. Pursuant to the directions of the Hon’ble High Court of Allahabad, the appellant approached the Adjudicating Authority for

sanction of refund. The Dy. Commissioner vide order dated 29.08.2008 has held that refund claim cannot be entertained for payment, since the order

dated 20.11.2004 of the Hon’ble High Court of Allahabad has not been complied with by the appellant. In appeal, the Commissioner (Appeals)

vide the impugned order has upheld the order dated 29.08.2008 of the Adjudicating Authority. Hence, this appeal is before the Tribunal.

Heard both sides and perused the records.

I find that the order dated 23.05.2003 of the Hon’ble High Court of Allahabad has not been complied with by the appellant, inasmuch as, as per

the direction of the Hon’ble Court, no security to the satisfaction of this Tribunal has been furnished by the appellant, entitling it to get the refund

from the Original Authority. Therefore, I do not find any infirmity in the orders passed by the authorities below.

However, considering the fact that the order dated 23.05.2003 and 20.11.2004 of the Hon’ble High Court of Allahabad have to be given effect

to for the purpose of meeting the ends of justice, I am of the view that the appellant should be given an opportunity to furnish the bond for the refund

amount before this Tribunal.

Therefore, the appellant is directed to furnish the bond for Rs.16,23,564/- in the requisite format before this Tribunal and to submit the proof of

execution of such Bond to the Jurisdictional Dy. Commissioner of Customs and Central Excise, Hapur Division, Hapur. Upon receipt of the intimation

from the appellant regarding execution of requisite bond, the Original Authority shall pay the refund amount to the appellant.

The appeal is disposed of in above terms.

(Pronounced in open Court on 01.10.2015)