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2022 (6) TMI 160 - AT - Central ExciseEntitlement of interest on delayed refunds - amount deposited is in the form of pre-deposit - HELD THAT:- Though the appellant have paid the duty on the audit objection the same was paid as a duty only thereafter the appellant has not objected on the payment made by them. The refund application was filed after the commissioner (Appeals) allowed the cenvat Credit. The refund was sanctioned within 2 months from the date of filing application As per the Hon’ble Supreme Court in the judgment of RANBAXY LABORATORIES LTD. VERSUS UNION OF INDIA AND ORS. [2011 (10) TMI 16 - SUPREME COURT], the interest is payable only when there is a delay beyond 3 months from the filing of application of refund. In the present case the refund was sanctioned within 3 months. From Clause (ec) sub-clause of (B) of sub-Section 5(4), for the purpose of relevant date it is the order by which the amount became refundable must be considered. In the present case it is the order of the Commissioner (Appeals) by which the refund became payable to the appellant. Therefore, prior to the date of order of Commissioner (Appeals) there was no cause for granting any refund. Moreover, even the appellant also not sought for any refund prior to the order of the Commissioner(Appeals). The interest is payable only after 3 months from the date of application of refund - In the present case admittedly the refund was sanctioned within 3 months from the date of application. Hence no interest is payable. Appeal dismissed.
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