Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2023 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (2) TMI 437 - AT - Central ExciseEntitlement to interest on refund which was deposited during investigation in the year 1995, before issuanc of SCN - pre-deposit or not - Section 11B and 11BB of Central Excise Act, 1944 - HELD THAT:- On identical facts, a co-ordinate bench of the Tribunal in the matter of M/S RATNAMAI METALS & TUBES LTD VERSUS C.C.E. & S.T. -AHMEDABAD-III [2018 (8) TMI 539 - CESTAT AHMEDABAD] has held that although the amount had been paid during the investigation but it shall be considered as payment of duty only. And when this be so, the refund of the duty amount is clearly governed by section 11B ibid and the interest is available under section 11BB and the interest is payable after completion of three months from the date of filing of refund application. From a bare reading of the section 11BB ibid it is clear that the legislature has casted a duty upon the adjudicating authority to decide the claim for refund immediately within three months, failing which the liability for interest starts running after expiry of three months from the date of the application - In the instant matter, if there is any deficiency in the application, the department could have rejected the said application as they are under obligation to decide the application one way or other during the statutory period of three months. When the application for refund has been filed by the appellant on 26.10.2018, three months period has started running from that date itself. Liability for payment of interest after the expiry of three months is statutory and therefore it was a bounden duty of the authority concerned to pay interest after the expiry of the aforesaid period at the rate as specified under section 11BB ibid. The appellant is entitled for the interest on refund after the expiry of three months from the date of application till the date the payment of refund has been made and the order impugned herein is modified to that extent - the authority concerned is directed to calculate and pay the interest on refund to the appellant after the expiry of three months from the date of the application upto the date of refund, within a period of two months from the date of this order - application allowed.
|