TMI Blog2015 (3) TMI 997X X X X Extracts X X X X X X X X Extracts X X X X ..... F. No. 195/1039/11-RA - 10/14-CX - Dated:- 3-1-2014 - D.P. Singh, Joint Secretary ORDER This revision application is filed by the applicant M/s. Shri Lai Mahal Ltd. (Formerly M/s Shivnath Rai Harnarain (India) Ltd., Delhi) against the Order-in-Appeal No. 25/2011(V-II) CE dated 29.07.2013 passed by the Commissioner of Central Excise (Appeals), Visakhapatnam, with respect to Order- in-Original dated 18.02.2011 passed by the Assistant Commissioner of Central Excise, Kakinada-II in Central Excise Commissionerate Vishakhapatnam-II. 2. Brief facts of the case are that the applicant are merchant exporters and have exported rice, for which PP woven sacks were used as packing material. The applicant filed a rebate claim for ₹ 1,43,74995/- on 10.07.2007 before the Assistant commissioner of Central Excise, Kakinada II division on the ground that they had exported rice to various countries and had used duty paid material, i.e. PP woven sacks which were used for packing of rice and that they were eligible for rebate of duty paid on the packing material used for export. The said claim was returned to the applicant by the said authority on the ground that certain procedura ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls) on the ground that the said claim was sanctioned without applicable interest to them inspite of their eligibility of interest in terms of Section 11BB of the Central Excise, Act 1944. Commissioner(Appeals) rejected the appeal filled by the applicant. 4. Being aggrieved by the impugned Order-in-Appeal, the applicant has filed these revision application under section 35 EE of Central Excise Act, 1944 before Central Government on the following grounds: 4.1 Deputy Commissioner Kakinada-II and Commissioner(Appeals) Visakhapatnam as well, passed orders in gross violation of the Section 11BB of the Central Excise Act, 1944. The said Section 11BB of the Central Excise Act, 1944 reproduced says: If any duty ordered to be refunded ; And, in the instance case the duty was ordered to be refunded by Joint Secretary (RA Unit) vide GOI Order No. 1667/10CX dated 01.11.10. Hence not paying the interest on delayed payment of the subject rebate claim was a clear disobedience of a GOI order on the part of both the lower authorities, thus need to be set aside. 4.2 Deputy Commissioner Kakinada-II had shown a little knowledge about the' CBEC Circular No. 670/61/2002-CX dated 01.10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision application filed by applicant against said Order-in-Appeal was allowed vide Government of India order No. 1667/10-CX dated 01.11.2010. The original authority sanctioned the rebate claims in compliance of said GOI order No. 1667/10-CX dated 01.11.2010. The applicant filed appeal before Commissioner(Appeals) on the ground that the said claim was sanctioned without applicable interest to them inspite of their eligibility of interest in terms of Section 11BB of the Central Excise Act, 1944. Commissioner(Appeals) rejected the appeal filed by the applicant. Now, the applicant has filed this revision application on grounds mentioned in para (4) above. 8. Government notes that on delayed payment of refund/rebate claim interest is payable after the expiry of three months of the date of receipt of application for rebate in the Divisional office in terms of Section 11BB of Central Excise Act, 1944. This very issue is already decided by Hon'ble Supreme Court in the case of M/s Ranbaxy Laboratories Ltd. vs. UOI reported as 2011 (273) ELT 3 (SC). Hon'ble Supreme Court has categorically held as under: 9. It is manifest from the afore-extracted provisions that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supra is that the 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. 8.1 In another case of M/s Jindal Drugs, Government relying on above said judgement of Apex Court, vide its GOI Order No. 247/2011-Cx dated 17.03.11 passed In revision application No. 198/184/08-RA-CX filed by Commissioner Central Excise, Raigad against order-in-appeal No. SRK/455-460/RGD-08 dated 24.07.08 passed by Commissioner of Central Excise (Appeals) Mumbai Zone-II, had upheld the impugned orders-in-appeal and held that in terms of Section 11BB interest is payable after expiry of three months from the date of receipt of refund / rebate application. Department contested the said GOI Order dated 17.03.11 by filing WP No. 9100/2011 in Bombay High Court who in it's judgment dated 30.01.2012 has upheld the GOI Order No. 247/2011-CX dated 17.03.11. The observations of Hon'ble High Court in para 2,3 of said judgment are reproduced below: 2. Counsel appearing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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