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2019 (1) TMI 1724 - AT - Central ExciseInterest on delayed refund - whether the appellant is entitled to interest on refund from 26-8-1995 (i.e. three months after the Finance Bill 1995 was assented to by the President) or from 27-9-2002 when the CESTAT ruled that the appellant is entitled to refund and the provisions of unjust enrichment would not apply? HELD THAT - The proviso to Section 11BB requires the interest to be paid from 26-8-1995 - Interest is payable with reference to the date of application for refund. It does not matter if they were denied refund initially and succeed at some appellate stage. The relevant date will still be the date of application for applications made post 1995. For applications made before it becomes payable from 26-8-1995 as per the proviso to Section 11BB. The Learned first appellate authority has clearly erred in violating the statutory provisions and sanctioning refund from the date he considered fair - The appellant is entitled to interest on refund from 26-8-1995 till the date of payment of refund. Appeal allowed - decided in favor of appellant.
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