The liability to pay excise duty is contingent upon the actual import taking place, and in the absence of provision for refunds in the Act and Rules, the court can award interest on equitable grounds.

JUDGMENT

Prathiba M. Singh, J. (Oral)--This hearing has been done through hybrid mode.

2. In the present petition, the Petitioner seeks refund of Rs.20,52,558/- given by it towards advance payment of excise duty along with refund of import permit fee of Rs.39,699/-.

3. In the year 2016, the Petitioner-Gwalior Alcobrew Private Limited, based in Gwalior, Madhya Pradesh, intended to dispatch 900 cases of Pure Gold Premium brand whisky from Madhya Pradesh to Delhi. It, accordingly, applied for obtaining export permit in Madhya Pradesh and the import permit in Delhi in terms of Delhi Excise Act, 2009 and the Rules framed thereunder. The requisite permits were obtained by the Petitioner after depositing excise duty to the tune of Rs.20,52,558/- and the import permit fee to the tune of Rs.39,699/-.

4. After obtaining the requisite permits, the Petitioner had put the bar code on the IMFL as mandated under the Delhi Excise Act. Thereafter, the products were dispatched from Gwalior but were intercepted at Dholpur, Rajasthan on 12th October, 2016 by Dholpur Excise circle inspectors and the same were detained. The said seizure, in effect, resulted in the import not being completed and concluded in Delhi.

5. The Petitioner has availed of its remedies qua the said illegal interception, which is not the subject matter of this petition.

6. In view of the goods having not been imported to Delhi, the Petitioners made an application dated 10th August, 2019 seeking refund of excise duty and import duty to Respondent No.3. Repeated representations seeking the refund of the excise duty as also the import fee were made by the Petitioner which were, however, not considered. Hence, the present writ petition has been filed seeking following prayers:

"a) issue a Writ of Mandamus or any other appropriate writ or order or direction in the nature thereof, directing Respondent No.3 to refund Rs.20,52,558.00 along with applicable interest deposited towards advance excise duty against import of IMFL and Rs.39,666,00 along with interest being import permit fee;

b) in the alternative, issue a Writ of Mandamus or any other appropriate writ or order or direction in the nature thereof, directing the Respondent No. 3 to adjust the advance excise duty of Rs.20,59,558.00 along with interest accrued towards future imports made by the Petitioner and Rs.39,666,00 along with accrued interest towards future import fee;"

7. On the last date of hearing i.e., on 27th September, 2022, this Court had directed as under:

"This writ petition has been preferred for directions being framed calling upon the respondents to refund Rs.20,52,558/- along with interest, the sum representing the Advance Excise Duty which was deposited as well as a sum of Rs.39,666/- being the amount paid towards import fee.

The submission of learned counsel for the petitioner was that since the import never fructified, there exists no justification for the respondents to retain the Advance Excise Duty that had been deposited. It is pointed out that the consignment in question had been illegally detained by the excise authorities in Rajasthan which was duly challenged by the petitioner. Once the petitioner succeeded in that challenge, the consignment is stated to have been transported back to Madhya Pradesh. It is in the aforesaid backdrop that the petitioner has approached this Court seeking release/refund as noticed above.

The Court notes that in support of the prayers that are made, a representation is already stated to have been made to the competent authority in the Excise Department. In view thereof, let the said representation be decided by the respondents and a decision taken thereon be placed on the record of this writ petition on or before the next date fixed.

List again on 13.01.2023."

8. Today, ld. Counsel appearing for the Respondents has placed on record the order dated 12th January, 2023 passed by the Deputy Commissioner, Excise, GNCTD vide which the representation for refund has been rejecte