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2016 (3) TMI 305 - AT - Central ExciseInterest on delayed payment of interest - Held that:- Regarding the interest, we find that for the first time the legal provision for payment of interest on refund was introduced in the law only on 26.05.1995 through Finance Act, 1995. In the absence of any provision prior to that date the appellants plea for payment of interest for the prior period cannot be sustained. Similarly, we find that there is no provision for payment of interest on interest in the Central Excise Act or Rules made there under Sanction of a part of the refund amount by way of credit in the cenvat account - Held that:- We find that the appellants have made out a case in their favour. It is seen that in the impugned order, the ld. Commissioner (Appeals) also categorically recorded that refund of duty paid through modvat account is to be given in cash only, when the assessee concerned is not in a position to utilize the credit. We find in the present case the appellants are operating under small scale exemption scheme and it is recorded that in the end of the year they are reversing the available credit in their books in order to avail SSI exemption. Considering this position, granting refund and crediting it to the modvat account will not in effect allow the appellant to utilize the fund which was collected and kept by the Government in excess of legal due. Under these circumstances, we find the refund sanctioned already is to be given in cash and to that extent, we modify the impugned order and dispose of the present appeal.
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