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2018 (11) TMI 1455 - AT - Central ExciseInterest on delayed Refund - relevant date - From which date the appellant is entitled for interest on the sanctioned refund? - Held that:- The refund application filed by the applicant was admittedly filed on 14.07.1999 only, thereafter, the cause of action for refund arises. Since an amount i.e. 60 Lacs minus adjudged due as per order in original dated 21.04.1999 become refundable and the same should have been sanctioned within 3 months from date of filing of application i.e. 14.07.1999. Accordingly, on such balance amount the interest is payable from 3 months of date of filing the refund i.e. 14.07.1999. As regard remaining amount of refund that has arisen only from the date of Tribunal order dated 12.06.2002 by which the demand confirmed by the original order was set aside, that means the amount of duty which was set aside by the Tribunal become refundable from 3 months of Tribunal order dated 12.06.2002. Accordingly, on such amount interest is payable from 3 months of date of Tribunal order. In the present case, the period for interest has to be reckoned not only with reference to filing of refund application but also as per the provision of explanation (B)(ec) of section 11B, therefore, interest is payable in accordance with said provision. Appeal allowed in part.
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