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2019 (7) TMI 1460 - CESTAT MUMBAIInterest on delayed refund - refund claims were sanctioned by the Department with a delay of more than three months from the date of filing of the said claims - HELD THAT:- The admissibility of interest for delayed cash refund of accumulated CENVAT Credit under Rule 5 of CENVAT Credit Rules, 2004 has been settled in favour of the assessee by various High Courts including jurisdictional Bombay High Court. Recently, the Hon'ble Karnataka High Court following the principles laid down by the Hon'ble Supreme Court in RANBAXY LABORATORIES LTD. VERSUS UNION OF INDIA AND ORS. [2011 (10) TMI 16 - SUPREME COURT] held that Liability of the revenue to pay interest under Section 11BB of the Act commences from the date of expiry of three months from the date of receipt of application for refund under Section 11B(1) of the Act and not on the expiry of the said period from the date on which order of refund is made. The interest is admissible on the delayed cash refund sanctioned under Rule 5 of the CENVAT Credit Rules, 2004 - However, the learned AR for the Revenue submits that neither in the adjudication order nor in the Commissioner’s (Appeals) finding, exact amount of interest claimed has been mentioned. Therefore, for quantification of interest admissible to the appellant, the matter should go back to the adjudicating authority. Appeal allowed by way of remand.
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