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2013 (6) TMI 88 - HC - Central ExciseInterest on Refund u/s 11BB - claim of interest on interest - long battle for getting refund of amount deposited during litigation - held that:- It is true that the decision of this court in case of Afrique Tradelinks Pvt. Ltd. (2004 (2) TMI 651 - High Court of Gujarat) and the Apex Court in the case of Ranbaxy Laboratories Ltd. (2011 (10) TMI 16 - Supreme Court of India) were rendered subsequent to the Deputy Commissioner taking a contrary view. However, the Departmental clarification itself was sufficiently clear and was binding on the Deputy Commissioner. Reference to the decision of the Tribunal in case of Bharat Heavy Electricals Ltd. (2001 (10) TMI 143 - CEGAT, COURT NO. I, NEW DELHI)was wholly erroneous. All that the Allahabad High Court in case of Super Electronics (1999 (5) TMI 37 - HIGH COURT OF JUDICATURE AT ALLAHABAD) provided was for interest after three months of the date of refund application. The petitioners were made to engage in continuous litigation for years together before initially their refund claims were sanctioned even after the issue of classification by the Board and the appeal was decided in their favour. Thereafter, on such refund, interest was improperly denied. Ordinarily grant of interest flows either from statutory provision or contractual relations between the parties. In the present case, there is no statutory provision providing for interest on interest. In the present case, however, we find that the excise authorities acted rather unjustly and initially delayed not only the refund, but thereafter, unjustly withheld the interest payable thereon. At all stages, the petitioners had to approach higher authorities in further appeals. Department cannot avoid the liability of accounting for interest on the delayed payment of interest to the extent the same was paid late. - interest on interest allowed at the rate of 9%. - Decided in favor of assessee.
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