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2009 (2) TMI 321 - AT - Central ExciseIssue involves grant of interest to the appellants on the amount deposited by them on 27-1-1997. The learned Advocate stated that the above amount was deposited on the direction of the Revenue in the course of some investigation conducted. – but there was delay in refund of that amount - Adjudicating Authority passed an order dated 31-3-2000 dropping the proceedings against the appellants. – Consequent to the adjudication order dropping the proceedings, the said amount ought to have been refunded to the party even without waiting for the refund claim. - Government cannot retain the money of any person without the authority of law. In the course of hearing, it transpired that in respect of the refund claim of the appellant, the same was rejected on the ground that the said deposit had no link with the OIO dated 31-3-2000 - In order to get the refund, appellant took credit in PLA and subsequently asked for refund of unutilized amout which was also rejected - Even after four years, the Department did not bother to ascertain why an amount was deposited by the appellant and also the grounds for not refunding it. – Commissioner (A) directing refund and same was granted by order dated 7-11-2006. This is a very clear case where the department had kept the amount deposited by the appellant on 27-1-1997 without any authority of law. Therefore, the time restriction mentioned in Section 11BB would not be applicable in this case - department is liable to pay interest from the date of payment of duty to the date of actual payment of refund at the rate as notified under Section 11BB of the Central Excise Act
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