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2009 (8) TMI 184 - AT - Central ExciseAppellant’s rebate claim was sanctioned by the Assistant Commissioner but adjusted against an outstanding amount , which according to the Assistant Commissioner, was pending as interest amount in respect of some earlier confirmed demand. – interest was confirmed on ground that cash payment required and credit not utilizable - in terms of the law declared by the Larger Bench in the case of Noble Drugs Limited v. CCE, Nasik, no interest is required to be paid where duties actually paid from the Modvat credit account instead of paying in cash. – order of Commissioner (Appeals) holding interest liable to be paid, were not challenged by appellant before higher appellate forum but quantum of interest not confirmed in such order - in the light of the Larger Bench judgment of the Tribunal, it transpires that no interest is required to be confirmed in terms of Section 11AB. Inasmuch as even the earlier orders were for confirmation of interest in terms of Section 11AB, which is found to be Nil in terms of the Larger Bench judgment, it can safely be concluded that the interest required to be paid would be Nil. In such a case, the rebate claim sanctioned is required to be refunded instead of adjusting the same against the interest amount
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