9911796707
TMI Blog2002 (4) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... 99 and was sanctioned by the Dy. Commissioner, Central Excise, Div-II, Ankleshwar vide O.I.O. No. Refund/85/Div-II/Ank/2000, dtd. 22-9-2000. The appellant filed appeal against the above order claiming interest for delay in refunding the amount. (ii) The appellant had filed a refund claim for Rs. 2,65,370/- on 7-9-1999. The same was disposed of vide O.I.O. No. D/27/BHA/ADC/P&V/967-97, dated 24-2-97 by adjusting the said amount against the confirmed demand/arrears and in appeal proceedings the Commissioner (Appeals) set aside the same vide OIA No. SSS/SRT/673-801/99, dated 26-7-99 and remanded the case back with certain directions. In de novo proceedings, the adjudicating authority has sanctioned the refund by w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 751 (GOI). There are two appeals involving the same issue and the same are being decided by this common order. 4. I have, carefully, examined the records of the case, the paper book and the written submissions made at the time of personal hearing. The issue involved in both the appeals in brief is the eligibility of the appellants to interest on delayed payment of refund claims. I observe that provisions of granting refund of Excise duty are contained in Section 11B of the Central Excise Act, 1944. Sub-section (1) of Section 11B provides for making an application for refund of such duty and interest to the concerned Assistant Commissioner/Deputy Commissioner. Sub-section (2) provides that regarding the whole or any part of duty and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be, by the court shall be deemed to be an order passed under the said sub-section (2) for the purposes of this section." In view of the above provisions, it is very clear that the interest would be paid from a date immediately after the expiry of three months from the date of receipt of refund application under Section 11B(1) of the Central Excise Act, 1944. 5. In order to remove any doubt whatsoever in the above issue, the CBEC issued a Circular No. 130/41/95-CX, dtd. 30-5-1995 wherein attention was invited towards the introduction of Section 11BB by the Finance Act, 1995. In the said instruction, it has been mentioned that the Department has become liable to pay interest at the prescribed rate in case of various type of refunds whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w, I, also, find support from the order of Govt. of India in the case of BPM Inds. Ltd. reported in 2001 (128) E.L.T. 557 (GOI) wherein the Govt. of India has held in para 5 as under :- "Govt. in its Order Nos. 46-48/99, dated 23-6-1999 in the case of RPG International had held that interest shall have to be paid on any duty ordered to be refunded under Section 11B(2) of the CEA, 1944 from the date immediately after the expiry of three months from the date of receipt of such refund application till the date of refund of such duty." 7. In arriving at the above position, the G.O.I. has placed reliance on the judgment contained in 2000 (125) E.L.T. 1246 (T) and 1999 (113) E.L.T. 751 (G.O.I). In this respect, it is also important that in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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