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2020 (12) TMI 753 - AT - Central ExciseRefund of unutilized CENVAT Credit - surrender of registration under Rule 5 of the Cenvat Credit Rules, 2004 - rejection on the ground that neither the refund claim is covered under Section 11B of the Central Excise Act, 1944 nor under Rule 5 of the Cenvat Credit Rules, 2004 - interest on delayed refund - HELD THAT:- This Tribunal in the case of M/s Shree Krishna Paper Mills & Ind. Ltd. [2018 (4) TMI 1155 - CESTAT CHANDIGARH] has observed that although this Tribunal has denied refund claim in the case of Phoenix Inds Ltd [2014 (10) TMI 677 - CESTAT MUMBAI] but the Regional Bench at Chandigarh is bound by the decision of Hon‘ble High Court of Punjab & Haryana; therefore, relying on the decision of Rama Industries Ltd [2009 (2) TMI 136 - PUNJAB AND HARYANA HIGH COURT], it is held that the appellant is entitled for refund claim of unutilized cenvat credit lying in their cenvat credit account at the time of surrender of the registration under Rule 5 of Cenvat Credit Rules, 2004. Grant of interest on delayed refund after three months of filing of the refund claim - HELD THAT:- In the case in hand, the claim of interest by the appellant during the course of arguments is a consequential relief, as it has been held that the appellant is entitled for refund, then they are entitled for interest also after three months of filing of the refund claim. It is a fact on record that at the time of filing of refund claim before the adjudicating authority, the appellant was not aware that the adjudicating authority will not sanction their refund claim within three months of the filing of the same. Therefore, claim of interest on delayed refund could not be raised before the adjudicating authority - Admittedly, it has been held that it is a consequential relief, therefore, the appellant is entitled for interest after three months from the date of filing refund claim. The issue of claim of interest is a legal issue and can be raised at this stage, as the appellant has succeed on merits that they are entitled for refund claim, therefore, the adjudicating authority shall entertain the claim of interest of the appellant after three months from the date of filing refund claim - Appeal allowed - decided in favor of appellant.
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