SC issues notice to Sterlite in excise matter

The Supreme Court has issued a notice to Sterlite Industries on a petition filed by the Centre alleging that the company was not entitled to any interest on its refund claim of about Rs 71 crore.
A bench headed by Justice S H Kapadia has recently sought reply from the company asking why more than Rs 8.20 crore interest should be paid on its refund claim.
The Centre has moved the apex court challenging the Gujarat High Court decision that asked the excise department to pay interest on refund claimed by Sterlite Industries, the manufacture of copper cathodes and cooper rods.
Stating that Sterlite was not entitled to any interest as the duty amount was never deposited in the exchequer, the department said, "The credit was all along lying in balance with the claimant only and the claimant was always free to utilise the same... At the time of filing refund claim, the claimant had balance of credit more than Rs 70.71 crore. However, the company kept on utilising the said balance during the pendency of refund claims and, therefore, at the time of sanction of refund it had only Rs 44.20 crore in balance."
The petition further added that thus there was no provision under the statute for the interest on refund of amount which was never deposited in the exchequer. Besides, Sterlite had not claimed any interest in its refund plea and also the High Court had given an option to the revenue to consider the admissibility of the interest as per the law.
Press Trust of India / New Delhi July 02, 2008, 18:57 IST
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