Commissioner Of Central Excise, Delhi vs Frick India Ltd.

The Supreme Court clarified its earlier stay order dated 1-3-2002 regarding the refund of a pre-deposit amount of Rupees One Crore made by the manufacturer-assessee. The Court held that the refund is permissible provided the assessee furnishes a bank guarantee from a nationalised bank, ensuring the amount remains secured until the final disposal of the appeals. The Court also ruled that no interest on the refunded amount shall be granted, modifying the Tribunal's earlier directive in this regard.