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2022 (6) TMI 161 - AT - Central ExciseEntitlement of Interest on delayed refund - relevant date for calculation of time - appellant is seeking interest right from the date of duty deposited during investigation - whether appellant is entitled for interest only after three months from the date of application of refund? - HELD THAT:- The fact is not in dispute that appellant has deposited certain amount during investigation. The appellant neither filed any claim nor refund application but because of demand which was dropped by learned Commissioner (Appeals) only thereafter they filed refund claim. The Hon’ble Supreme Court in the case of RANBAXY LABORATORIES LTD. VERSUS UNION OF INDIA AND ORS. [2011 (10) TMI 16 - SUPREME COURT] held that interest on refund is payable only after three months from the date of application. Therefore, since the appellant’s refund claim is sanctioned within three months no interest is accrued. As per Clause (ec) of Section 11B (2), the relevant date for filing refund application is one year from the date of order from which the refund arose. In the present case, refund arises only after passing of order-in-appeal by the Commissioner (Appeals) dropping the demand. Therefore, there is no occasion to give refund prior to the date of order-in-appeal. Considering that the refund was sanctioned within three months from the date of application and the refund arose consequent to order of Commissioner (Appeals), no interest is payable from the date of deposit of the duty during investigation. The appellant is not entitled for the interest on refund sanctioned from the date of deposit of duty - appeal dismissed - decided against appellant.
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