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2016 (10) TMI 613 - AT - Central ExciseInterest on delayed refund of pre-deposit u/s 35 F of the Central Excise Act 1944 - Circular No. 802/35/2004-cx date 8/12/2014 issued from File No. 387/5/2001-JC - Held that: - circular clarified that Delay beyond the period of three months will be viewed adversely and appropriate disciplinary action will be initiated against the concerned defaulting officers. All concerned are requested to note that default will entail an interest liability, if such liability accrues by reason of any orders of the CESTAT/ Court, such orders will have to be complied with and it may be recoverable from the concerned officers. Circulars issued by CBEC are binding on the field formations - interest on delayed payment allowed. Interest on interest - the decision in the case of Sandvik Asia Ltd. Vs CIT-I Pune [2006 (1) TMI 55 - SUPREME Court] referred - Held that: - the decision in the case not applicable as there was an inordinate delay of 12-17 years in payment of interest on refunds which is not the factual matrix in the present proceedings - interest on interest not allowed. Interest on delayed refund allowed - the relevant date for calculating the interest will be 3 months from CESTAT order dated 3/6/02 as per Para- 4 of CBEC Circular dated 8/12/2004 - appeal allowed - decided partly in favor of appellant.
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