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2022 (12) TMI 364 - AT - Central ExciseInterest on the amount of refund sanctioned - deposit made during the investigations is merely a deposit of the duty under section 11B of Central Excise Act, 1944 (CEA), or not - applicability of Section 11BB of CEA - HELD THAT:- Hon’ble Apex Court has settled this issue in the case of SANDVIK ASIA LIMITED VERSUS COMMISSIONER OF INCOME-TAX AND OTHERS [2006 (1) TMI 55 - SUPREME COURT] holding the assessee entitled for interest on the refund of the amount which he was not liable to pay to the Department from that date of the deposit itself. Section 11B of CEA is not applicable to such revenue deposits. It is further observed, as has been brought to notice, that Department since the time of issue of show cause notice have been acknowledging that amount in question is neither the amount of duty nor the amount of pre-deposit, the said acknowledgement is sufficient when read in the light of above discussed law to hold that the appellant was definitely entitled for interest on the amount of Rs.10,00,000/- but not in accordance with section 11B/11BB of Central Excise Act, 1944. Accordingly, it is held that Commissioner (Appeals) has wrongly involved the said provision while restricting the entitlement of appellant for claim of interest. The appellant is entitled for the interest @ 12% per annum from the date it was deposited i.e. with effect from 31.08.2009/ date of clearance of cheque for the said amount of Rs 10 lakh. Issue No. (1) as framed above accordingly is decided in favour of the appellant. Whether the Appellant is entitled for interest on the amount of interest if sanctioned as compensation to be paid by the Department for causing unnecessary monetary loss and harassment to the Appellant? - HELD THAT:- The amount in question was not a duty deposit but was the Revenue deposit, the Government has retained the said amount over long years, as such appellant is held entitled for interest as compensation on the amount of interest already awarded under issue No. (1) however, @6% from the date of impugned Order-in-Appeal till its disbursement. Appeal allowed - decided in favor of appellant.
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