Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (8) TMI 130 - AT - Central ExciseInterest on interest under excise Act - JAC granted the refund and the amount was granted by the JAC vide his order No. ANK-III/BCP/195 dated 27.02.08 without any interest under Section 11B and as per Board’s circular No.670/61/2002-C.EX dated 01.10.02. The appellant requested the JAC on 13.10.08, for grant of interest and the JAC vide his order No. ANK/BCP/271/REFUND/2008 dated 22.01.09 sanctioned the interest amounting to Rs.28,120/from the date of final order i.e. 12.02.08 to 05.10.08. The appellant was paid remaining amount of interest amounting to Rs.8,78,293/- - Aggrieved by such an order, the assessee preferred an appeal before the first appellate tribunal. The first appellate authority after following the due process of law, set aside the impugned order and directed the lower authorities to pay interest on belated payment of interest to the assessee – Held that:- The ratio of Larger Bench judgment in the case of Sun Pharmaceuticals Industries Ltd. [2005 (5) TMI 90 - CESTAT, NEW DELHI] - the legislature thought it fit not to provide for any interest on interest even in case of delay in payment of interest on refund amount. To read the liability to pay interest on interest in the provisions of law contained in Section 11BB of the Act, would virtually amount to legislate upon the Act and that is not the function of the Tribunal which is creation under the said Act itself and has to exercise power conferred upon it under the Act. It may also be added that before the introduction of Section 11BB, the Tribunal had no power to award interest by exercising inherent power, on the amount of refund of duty even if paid late. In this context, reference may be made to the judgment of the Hon’ble Allahabad High Court in the case of Prestige Engineering (India) Pvt. Ltd. v. Union of India [1990 (7) TMI 118 - HIGH COURT OF JUDICATURE AT ALLAHABAD)] ruled that When the Act (Central Excise) and the Rules made thereunder did not provide for payment of interest in case of refund of duty, It is to be presumed that the Parliament advisedly did not provide for the same, while enacting Section 11B in 1978. The authorities under the Act have to operate within the four corners of the Act and the Rules made thereunder. Since the Act or the Rules did not provide for grant of interest, the authorities under the Act, including the CEGAT, had no power to award interest - interest on delayed payment of interest, cannot be held to be permissible under the Central Excise Act and the Rules made thereunder – Decided in favor of Assessee.
|