ORDER

1. The respondent-Company manufactures certain medicines for which it was liable to pay excise duty. There was a dispute about the rate at which excise duty was payable by it on its products. The dispute came to be resolved finally by an order of Customs, Excise and Gold (Control) Appellate Tribunal dated 22-4-1983 in favour of the respondent. The direction given by the Tribunal was to reassess the duty payable by the respondent on the correct basis indicated by the Tribunal. On reassessment of the respondents liability being then made on that basis, refund of the excess duty paid by the respondent was made on 16-7-1984. The respondent then filed Writ Petition No. 5096 of 1984 in the Bombay High Court claiming Rs. 9,34,255.85 as interest @ 18% p.a. on the excess amount of duty which was liable to be refunded. In the writ petition, the claim for payment of interest was based on the ground of wrongful retention of the excess amount by the Revenue, the retention being unlawful, illegal, mala fide and arbitrary. The High Court accepted the respondents claim and allowed the writ petition issuing a writ of mandamus directing the Revenue to pay interest @ 12% on the amount of excess