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2022 (5) TMI 903 - CESTAT NEW DELHIInterest on delayed refund - relevant time for calculation of interest - entitlement to interest from the date of expiry of three months till the date of refund of said amount from the date of communication of the order or not - HELD THAT:- It is observed that the concept of three months has come under section 11BB of Central Excise Act which talks about the interest on delayed refunds. The pending amount of said provisions makes it clear that section 11B is applicable for such amount which was the amount of duty but was subsequently ordered to be refund. Commissioner (Appeals) himself has admitted the applicability of section 35FF, for the amount paid to be refunded being the amount of pre-deposit. However has invoked the pre-amended provision as was in existence prior to August 06, 2014. However the admitted fact of the present case is that the appellant become entitled for the refund pursuant to the order of this Tribunal dated 9.1.2017 i.e. the cause of action to claim the impugned refund arose in favour of the appellant after 6.8.2014 when section 35 FF got amended. A perusal of Section 35FF makes it clear that the amount of pre-deposit is to be refunded along with the interest which was not below 5 % and shall not exceed 36%. No concept of any time limit is being mentioned in the said provision. Hon’ble Apex Court also has settled this issue in the case of SANDVIK ASIA LIMITED VERSUS COMMISSIONER OF INCOME-TAX AND OTHERS [2006 (1) TMI 55 - SUPREME COURT] holding the assessee entiled for interest along with the refund of the amount which he was not liable to pay to the Department. The appellant was entitled for the disbursement of entire amount of Rs.60 lakh being the amount of pre-deposit. The adjustment of Rs.38,79,769/- was absolutely unreasonable and unjustified for being not pertaining to the impugned issue. Appellant is simultaneously entitled for the interest to be calculated at the rate of 12% from the date of payment of the said amount to be calculated in accordance with the table showing date of deposit - Appeal allowed.
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