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2022 (6) TMI 538 - AT - Central ExciseEntitlement of interest on refund amount - relevant time for calculation of interest - calculation of interest after the expiry of 3 months from the date of filing of the refund claim or not - Section 11BB of Central Excise Act, 1944 - HELD THAT:- As per the facts of the present case, it is found that there is no dispute about the fact that the refund claim had been filed on 19.05.2005 and the same was sanctioned only vide order-in-original both dated 04.04.2016. It is also noticed in the present matter that both the adjudicating authority considered the letter dated 23.11.2015 as refund claim application, whereas vide letter dated 23.11.2015 appellant only informed the Jurisdictional Deputy Commissioner that CESTAT has passed order in their favour and accordingly to sanction the refund amount along with interest. As per the statutory mandate of Section 11BB of the Act the department is under legal obligation to sanction the refund claim along with interest after the expiry of 3 months from the date of filing of the refund claim. In the present matter the time limit for payment of the refund amount to the Appellant by the Central Excise authorities (without interest) expired on 19-08-2005. Since, claimed amount was finally paid to the Appellant on 04.04.2016, the Appellant is entitled for the statutory interest from 20-8-2005 to the date when the refund was eventually paid, i.e., 04-4-2016. Appeal allowed - decided in favor of appellant.
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