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2016 (11) TMI 1222 - AT - Central ExciseInterest on delayed refund - whether the Appellants are eligible to interest on the amount refunded to them viz. ₹ 16,01,260/- and ₹ 81,984/- from 01.7.2000 i.e. the date of adjustment of the said amount from their sanctioned refund amount of Rs. ₹ 68,63,266.51 or from the date after succeeding in the Appellate proceeding, the date on which the amounts became due pursuant to the de novo Orders? - Held that: - A plain reading of the provision of section 11BB, it is clear that interest is due, if the refund is not sanctioned within three months from the date of filing of the refund claim - I find that the Division Bench of this Tribunal in the case of Jubilant Organosys Ltd [2013 (11) TMI 883 - CESTAT NEW DELHI] confronted with a similar question under more or less identical circumstances, where under after sanctioning rebate claim, the adjudicating authority instead of making payment of the same, adjusted it against the outstanding confirmed demand. Subsequently, on challenge of the confirmed demand Order before the Tribunal, the same was set aside resulting into payment of the earlier sanctioned amount adjusted against the said confirmed demand, allowing interest under Sec.11BB from the date of initial sanction of the refund. Interest is payable at the appropriate rate notified under Sec.11BB of CEA,1944 on the amounts viz. Rs. ₹ 16,01,260/- and ₹ 81,984/- from the date of its appropriation as claimed by the Appellant i.e. from 01.07.2000, till the date of payment of the said amount, pursuant to the de novo Orders - appeal allowed - decided in favor of appellant-assessee.
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