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2016 (10) TMI 575 - HC - Central ExciseRefund of amount alongwith interest - demand raised earlier towards which the amount already deposited is set aside - amount directed to be refunded to the petitioner - Insofar as the demand for interest at the rate of 18% per annum of such amount is concerned, this court while passing the order dated 6th December, 2013 had not specified that the petitioner would be entitled to refund of the amount with interest if it succeeded in the petition. The amount deposited by the petitioner is pursuant to an interim order passed by the court and is not in the nature of payment of excise duty and hence, the provisions of the Central Excise Act for refund would not be applicable. Consequently, the provisions of section 11BB of the Central Excise Act which provides for interest on delayed refund, would not be applicable. It is settled legal position that in the absence of a statutory provision entitling the assessee to interest, a mandamus cannot be issued to the revenue to pay interest. Therefore, though the petitioner has claimed interest at the rate of 18%, the same is not backed by any statutory provision and hence, the relief prayed in the application to that extent cannot be granted. Application succeeds - petitioner entitled to get the refund only of amount deposited earlier, and no interest granted - in case such amount is not paid to the petitioner within a period of three months, the opponents shall be liable to pay interest at the rate of 18% to the applicant for the subsequent period till the date of actual payment.
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