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2021 (3) TMI 123 - AT - Central ExciseInterest on delayed refund - claim of interest on delayed refund, from the date of deposit till the refund of the pre-deposit of principal amount - Amount deposited under protest - HELD THAT:- Admittedly, the amount under dispute was reversed on 31.03.2006 under protest and the same became pre-deposit within the meaning of Section 35 F ipso facto, by operation of law. On-going through the provisions of both Income Tax Act, 1961 and Central Excise Act, 1944, the interest on delayed refund is payable after expiry of 3 months from the date of granting refund or from the date of communication of order of the appellate authority, which are pari-materia - As the Hon’ble Apex Court in the case of SANDVIK ASIA LIMITED VERSUS COMMISSIONER OF INCOME-TAX AND OTHERS [2006 (1) TMI 55 - SUPREME COURT] has answered the issue holding that the assessee is entitled to claim interest from the date of payment of initial amount till the date of its refund - Therefore, the appellants are entitled to claim the interest on delayed refund from the date of deposit till its realization @ 12% per annum. Appeal allowed - decided in favor of appellant.
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