TMI Blog2009 (2) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -3-2000. Later, the appellant took credit of the deposit made (Rs. 4 lakhs) in his PLA Account in February, 2003. There was already an unspent balance in PLA to the tune of Rs. 3,83,897/-. After taking credit of Rs. 4,00,000/-, the appellant applied for refund of the entire amount on 10th December, 2004. The lower authority refunded only an amount excluding the amount of Rs. 4,00,000/- deposited by the appellant and credited in the PLA. Hence, the appellant approached the Commissioner (Appeals) who directed to refund the amount of Rs. 4,00,000/-. The said amount was refunded on 7-11-2006 by the Assistant Commissioner, However, in respect of interest, the Commissioner (Appeals) observed that the Adjudicating Authority had not passed any orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal in the case of Binjrajka Steel Tubes Limited v. CCE, Hyderabad-III - 2007 (218) E.L.T. 563(Tri.-Bang.) = 2008 (12) S.T.R. 788 (Tri.-Bang.). Interest on refund - SSI exemption - Consequential refund - Appellant paid duty even when eligible for SSI exemption as insisted by Department - Issue decided in favour of appellant and refund granted - When refund is granted in respect of any amount illegally collected, without authority of law, 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 Central Excise Act, 1944. (ii) The learned Commissioner ought to have noticed that no order can be issued by the Asst. Commissioner or any othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 in this case, the appellant adopted the following device. There was already an amount of Rs. 3,83,897/- which was unutilized in PLA account. Since he had deposited Rs. 4,00,000/-, he had taken credit of Rs. 4,00,000/- in PLA and filed a refund claim for the entire amount of Rs. 7,83,897/-. Even then, the lower authority granted only ..... X X X X Extracts X X X X X X X X Extracts X X X X
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