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2015 (1) TMI 944 - HC - Central ExciseInterest on refund claim - Refund sanctioned by Tribunal - Refund granted but interest not paid as appeal pending in Higher Court - Held that:- The statutory prescription that the claim for refund, if sanctioned, carries the obligation to pay interest, in the event, it is not remitted in a particular time, is undisputed. The only justification for withholding the sum is that the Revenue has approached the Higher Court and the Appeal of the Revenue is pending. We are of the view that mere pendency of these proceedings and in the given facts and circumstances, would not enable the Revenue to resist the claim as eventually, the principal amount was due and recoverable. That sum has been already remitted. In other words, the Petitioners have received a sum of ₹ 41,01,467/. The balance claim that remains is of interest on this sum. If the statute provides that in the event, amount is not paid within a specified time, then, the Revenue will have to pay interest, unless and until, the Revenue was able to obtain any preventive or prohibitory order and direction. It cannot refuse to release the sum in favour of the Petitioners. The Revenue could have released the sum without prejudice to its rights and contentions and subject to the pending proceedings in this Court and equally the Tribunal. The Rule is made absolute in terms of prayer clause (a) with the direction to the Respondents to pay the sum of interest as quantified in terms of the earlier orders and direction and the provisions of law - The amount as computed and quantified shall be released and paid to the Petitioners within a period of 12 weeks from today - Decided in favour of assessee.
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