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2016 (5) TMI 9 - HC - Central ExciseSeeking direction for grant of interest - Deposited voluntarily till the date of actual payment under Section 11B of the Central Excise Act, 1944 - Appellant submitted that interest is due and payable from the date of the application seeking refund till the date of payment. Also once there is an order of refund of duty and which is traceable under sub-section (2) of Section 11B, then to the Applicant to whom this amount is not refunded within three months from the date of receipt of the application under sub-section (1) of that Section, there shall be paid interest not below five per cent and not exceeding thirty per cent per annum as is for the time being fixed by the Central Government by notification in the Official Gazette. Held that:- once the Assistant Commissioner approached the matter in terms of Section 11B of the Act but the amount as directed to be refunded was not refunded within the time provided by the statutory provision, that, this is a fit case to award interest that is to be awarded for delayed refund. If the duty ordered to be refunded under sub-section (2) of Section 11B is not refunded within three months from the date of receipt of the application under subsection (1) of Section 11B of the Act, then, the award of interest must follow as mandated by Section 11BB(1) of the Central Excise Act, 1944. In the present case, the application made for refund under Section 11B is dated 4th October 2006. The amount of refund as directed in terms of the order dated 28th April 2015 has been disbursed and paid on 28th April 2015 by RTGS. Therefore, the Petitioners are entitled to interest at the rate of 6% from the expiry of the period of three months from the date of the application, meaning thereby the amount shall carry interest at the rate of 6% per annum from 4th January 2007 to 27th April 2015. - Decided in favour of assessee.
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