Home Case Index All Cases Central Excise Central Excise + CGOVT Central Excise - 2015 (12) TMI CGOVT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (12) TMI 1641 - GOVERNMENT OF INDIAClassification - Rebate - Interest - Diesel engines or centrifugal pumps - Held that: - it is observed that while a diesel engine is a compression ignition engine or an internal combustion engine, a centrifugal pump is a pump, driven by a motor/turbine such as an internal combustion engine, for moving liquids such as water. The centrifugal pumps are, as per HSN Explanatory Notes, appropriately classifiable under Tariff Heading 8413 70 - The diesel engines are employed in the composite machines viz. diesel engine driven centrifugal pumps, only to power drive the machine, i.e., centrifugal pumps. Such machines are, therefore, appropriately classifiable under Tariff Heading 8413 70 19 and not 8408 90 90 of the Tariff. On the issue relating to whether interest is recoverable from the applicant on the rebate paid erroneously to them, Government observes that recoveries of duties not levied or not paid and interest thereof are governed by Section 11A and Section 11AB (now Section 11AA) of Central Excise Act, 1944 - If taxes have been erroneously refunded upon export, they are required to be paid back to the exchequer in the same form as they were received. Further retention of amounts not due to them lawfully has placed the amount in the hands of the applicant and the exchequer must be compensated for such deprivation due to cash rebate taken incorrectly by the applicant. The Commissioner (Appeals) has therefore, erred in holding that no interest is chargeable under Section 11AA ibid on the amount erroneously refunded to the applicant. Cash rebate of the excess amount paid was clearly not payable to them and has been allowed as recredit in their Cenvat credit account by the Commissioner (Appeals) relying upon the view taken by the Hon’ble Punjab and Haryana High Court in Nahar Industrial Enterprises Ltd. v. UOI reported in 2009 [2008 (9) TMI 176 - PUNJAB AND HARYANA HIGH COURT ] - Revision application are disposed of.
|