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2014 (8) TMI 704 - AT - Central ExciseDenial of interest on refund claim - Interest @12% - Pre deposit made by assessee in 1998 - Appeal decided in favour of assessee - Amount deposited by assessee became refundable - Held that:- Section 11BB providing for interest on delay in refund was introduced w.e.f. 26/05/95 and specific provision for interest for the period of delay in the refund of the amount of pre-deposit was introduced by inserting Section 35FF w.e.f. 10/05/08. Though during the period of dispute, there was no provision for interest for the period of delay in refund of the pre-deposit, the Apex court in the case of ITC Ltd. (2004 (12) TMI 90 - SUPREME COURT OF INDIA) has held that when the amount of pre-deposit paid in terms of the Tribunals order becomes refundable on the final decision being in the assessee’s favour, the pre-deposit must be refunded within three months and the interest @ 12% would be payable for the period of delay beyond the three months. On the basis of Apex court’s judgment the Board also issued a Circular. Calcutta High Court in the case of Madura Coats Pvt. Ltd. vs. CCE, Kolkata - IV reported in [2012 (7) TMI 512 - CALCUTTA HIGH COURT] has held that during the period prior to 10/05/08 interest for the period of delay beyond three months in refund of pre-deposit would be payable @ 12% per annum in accordance with the Apex court’s judgment in the case of ITC Ltd. (supra) and not @ 6% per annum specified in the Notification No. 67/03-CE (NT). - Decided against Revenue.
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