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2014 (8) TMI 481 - DELHI HIGH COURTInterest on refund claim - date of service of order of Tribunal to the department - Whether service of a certified copy on the Commissioner of Central Excise, Delhi-I would constitute due service for the purpose of section 35FF of the Central Excise Act, 1944? - Held that:- Normally it is the Assistant Commissioner who grants the refund order. Even otherwise, in the facts of this case, the adjudication order had, in any event, been passed by the Commissioner of Central Excise, Delhi-I. Thus, in whichever manner the case is looked at, the Commissioner of Central Excise, Delhi-I would fall within the expression “adjudicating authority” as appearing in section 35FF of the said Act. Therefore, the relevant question to ask is on which date was the order passed by the Tribunal communicated to the “adjudicating authority”. Clearly, this fact has been recorded in the order dated 14.03.2014 itself that the order passed by the Tribunal on 04.03.2011 was served on the Commissioner of Central Excise, Delhi-I on 16.03.2011. Therefore, the refund ought to have been made on or before 16.06.2011. However, the refund was actually made on 18.10.2011. Therefore, interest was payable under section 35FF of the said Act to the petitioner for the period 16.06.2011 to 18.10.2011. Rate of interest has to be specified by the Central Government by a notification in the official gazette. However, the rate cannot be below five per cent and cannot exceed thirty per cent per annum. As per the notification No.67/2003-CE(N.T.) dated 12.09.2003 which was applicable during the relevant period, the Central Government has fixed the rate of interest at six per cent per annum for the purposes of section 11BB of the said Act. It is that rate of interest which shall be applicable in the present case also - Decided in favour of assessee.
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