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2007 (8) TMI 349 - HC - Central ExciseWhether the refund claim of excess amount of interest paid by the party under Section 11B of the Central Excise Act, 1944, is legally correct? Held that:- In the present case, it is undisputed that the rate of interest leviable on the respondent-assessee was 15% as was reduced by notification dated 13-5-2002, issued under Section 11AA and Section 11AB of the Act. However, the respondent-assessee had paid interest @ 24% per annum erroneously and an amount of ₹ 1,20,809/- has been ordered to be refunded. We find no reason to exclude the payment of interest from the provisions of Section 11B of the Act merely because it uses the expression 'refund of duty' because delayed payment of duty itself attract the payment of interest which is inextricably associated with duty. Moreover, such a collection of interest on account of delayed payment of duty would be unauthorised imposition of tax which is impermissible by the provisions of Article 265 of the Constitution. There is, thus, no merit in this appeal. W.P. dismissed.
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