2004 (6) TMI 446 - AT - Central Excise

Summary

Issues:
1. Calculation of interest on delay in refund claim sanctioning.

Analysis:
The appeal before the Appellate Tribunal CESTAT, Mumbai involved a dispute regarding the calculation of interest on a delayed refund claim sanctioning. The Commissioner (Appeal) had granted interest to the Respondent for the delay in sanctioning the refund claim, which was challenged by the Revenue. The impugned order granted interest to the Respondent from a specific period, while the Revenue contended that interest should be payable from a different date.

The Tribunal noted that the Respondent's rebate claim was sanctioned by the Deputy Commissioner, but the amount was adjusted against a pending demand. The Respondent's appeal against the demand order was allowed, leading to the payment of the refund amount at a later date. The claim for interest on the delay in sanctioning the claim was rejected initially. However, the Commissioner (A) held that interest liability arises after a specific period from the date the demand was dropped, which was determined to be from a certain date.

In the Revenue's appeal, it was argued that the interest should accrue from a later date based on the claim submission date. The Tribunal, after considering the arguments, affirmed the Commissioner (A)'s findings as legally correct. It was determined that the refund claim generated through the Commissioner (A)'s order, and interest accrues from the expiry of a specific period from that date.

Therefore, the Tribunal rejected the Revenue's appeal, upholding the decision regarding the calculation of interest on the delay in refund claim sanctioning.