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2016 (10) TMI 452 - HC - Central ExciseRejection of refund claim partly - Rule 5 of CCR - non-payment of interest on the refund - Cocoa powder / Cocoa Butter - 'manufacture' - labeling/repacking of Cocoa Butter and other products at Taloja Factory which amounting to manufacture in terms of Note 3 of Chapter 18 of the First Schedule to the Tariff Act read with Section 2 (f) of the Central Excise Act, 1944 - refund granted subsequently - whether for the purpose of calculation of interest the relevant date will be calculated the date the revised refund claims or the date of original refund claims? - Held that: - the original refund applications were complete in all respects and the refund was rejected purely on its merits that the activity does not amount to manufacture. The rejection of refund was not on the ground that it was incomplete or that all the relevant documents were not submitted by the Petitioner. Once an application for refund has been made and the same is granted within a period of three months of receipt of such application, there would be no liability to pay interest. However, if the refund is granted after the expiry of the period of three months from the date of receipt of the application, then interest would also be payable on the amount of refund granted, from the date immediately after the expiry of three months from the date of receipt of such application, till the date of refund. The Petitioner would be entitled to interest on the sum of ₹ 44,46,42,651/- from the date immediately after expiry of three months from the date of receipt of the original refund applications till the date of receipt of the refund amount. The Petitioner entitled to a refund of ₹ 1,66,59,749/- being the remaining amount of the refund claim. The Petitioner directed to debit the Cenvat balance of ₹ 46,64,152/- from its Cenvat account - matter remanded for calculating and paying the interest as well as the refund of ₹ 1,66,59,749/- - petition allowed - decided in favor of petitioner.
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