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2012 (7) TMI 512 - HC - Central ExciseEntitlement to interest on the delayed refund - @ 6% per annum in terms of the notification bearing No.67/03-CE(NT) dated September 12, 2003 issued for the purposes of Section 11BB as decided by the Assistant Commissioner - Held that:- As decided in Commissioner of Central Excise vs. ITC Limited [2004 (12) TMI 90 - SUPREME COURT OF INDIA] interest was payable @ 12% per annum for delay in refund of the amount paid by way of predeposit - the Revenue is trying to take advantage of the fact that this Court while referring to the circular No.802/35/2004-CX dated December 8, 2004 directed the respondent to pay interest to the appellant in terms of the circular on the pre-deposit of the delayed refund within two months from today it has to be construed that this Court meant the rate of interest which was awarded by the Supreme Court in the case Commissioner of Central Excise vs. ITC Limited which was the rate quantified by the Supreme Court in absence of any statutory provision in the said Act. contention of the Revenue that the Central Government is the only authority to fix the rate of interest and that Section 35FF was brought in by providing rate of interest on payment of pre-deposit delayed refund and quantified the rate of interest to be the same as in Section 11BB would not apply to the petitioner’s case as Section 35FF has been introduced in the Act by way of an amendment inserted with effect from May 10, 2008 by Section 85 of the Finance Act, 2008 (18 of 2008). Therefore, we clarify that the petitioner is entitled to interest @ 12% per annum on the amount of refund - in favour of assessee.
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