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2021 (6) TMI 742 - AT - Central ExciseInterest on delayed refunds - jurisdiction of adjudicating authority to review / reopen the adjudication order already passed - HELD THAT:- Both the authorities have failed to appreciate the reasoning given by the Tribunal while allowing the appeals of the appellant for refund of accumulated cenvat credit under Rule 5 with consequential relief - The Tribunal in GENERAL COMMODITIES PRIVATE LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE [2016 (7) TMI 653 - CESTAT BANGALORE] allowed the appeal of the appellant and the Revenue’s appeal before the High Court was also dismissed; hence the decision of the Tribunal attained finality. In spite of that, the appellant had to file again the refund application though the original authority vide its order dt. 25.09.2017 sanctioned the refund but did not grant interest in view of the consequential relief given by the Tribunal. Thereafter the appellant filed a separate application under Section 11BB of the Central Excise Act, 1944 for claiming the interest for the delay in granting the refund - But the Revenue did not take any action on the application of the appellant and the appellant had to approach the Tribunal for seeking direction to the original authority to dispose of the application and the Tribunal vide its order dt. 23.04.2019 directed the original authority to dispose of the application and thereafter the Revenue again issued a show-cause notice dt. 15.05.2019 to the appellant proposing to reject the demand for interest on the grounds that the original authority does not have the jurisdiction to review or reopen the adjudication order already passed and the appellant had the liberty to file appeal against such adjudication order but he had not filed the same and hence the original authority refused to grant the interest. The Board vide its circular No.670/61/2002-CX dt. 01.10.2002 has also allowed the payment of interest on delayed refund - Further, the entitlement to claim interest on delayed refund is already settled in favour of the assessee by the judgment of the Hon’ble Apex Court in the case of RANBAXY LABORATORIES LTD. VERSUS UNION OF INDIA AND ORS. [2011 (10) TMI 16 - SUPREME COURT]. The appellants are entitled for interest on delayed payment of refund - matter remanded back to the original authority with the direction to compute the interest in accordance with law - appeal allowed by way of remand.
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