TMI Blog2003 (12) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... ation in July 2000 for refund of the above amounts totalling to Rs. 42 lacs. The jurisdictional Assistant Commissioner sanctioned the refund but ordered that the amount be adjusted, under Section 11 of the Central Excise Act, towards certain arrears of Central Excise duty recovery whereof was pending against the party. Against this direction for set-off of the refund claim against the demand of Central Excise duty, the party preferred an appeal to the Commissioner (Appeals) and the latter held in favour of the appellants and directed refund of the aforesaid amount (Rs. 42 lacs) to them. The Commissioner (Appeals), however, did not accede to the appellant s claim of interest on the amount. 2. Another refund claim dated 21-2-97 for an amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that the provisions of Section 11BB of the Central Excise Act were applicable to the subject refund claims and, therefore, interest was liable to be paid on the principal amounts in terms of the said provisions. Counsel relied on the Tribunal s decision in Sharda Synthetics Ltd. Anr. v. CCE, Mumbai [2003 (156) E.L.T. 730 (T) = 2003 (57) RLT 626], wherein it was held that the provisions of Sections 11B and 11BB were applicable to refund of a pre-deposit made under Section 35F and hence interest was liable to be paid for the period after expiry of three months from the date of receipt of the Tribunal s order out of which the refund claim arose as consequential relief. Counsel also relied on the Tribunal s Larger Bench decision in Ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est can be allowed. In their letter dated 26-4-2001, the appellants categorically stated that they would not claim any interest. We reproduce the full text of this letter below :- SHERVANI INDUSTRIAL SYNDICATE LIMITED April 26, 2001 The Assistant Commissioner, Central Excise Deptt. Division-II Allahabad. Dear Sir, Re : Settlement of refund claims due from the Department. With regard to our various claims for refund of excise duty pending with the department, it is stated that we may not claim any interest from the department for the period of delay in settlement of such refund claims. We shall be grateful to you for an expeditious settlement of our claims. Thanking you, Yours sincerely, For Shervani Industrial Synd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants having intentionally abandoned their right to exemption from sales tax. In the instant case, the refund claims were filed under Rule 173S of the Central Excise Rules, 1944 read with Section 11B of the Central Excise Act. The provision for interest on delayed refunds was available at that time under Section 11BB of the Act. But no claim for interest was staked by them before the original authority. However, before the Commissioner (Appeals), they prayed for grant of interest also. But, as correctly noted by the learned Commissioner, the appellants had already abandoned their right to claim interest vide letter dated 26-4-2001 (supra) which was never repudiated. Their letter ex facie showed that they were conscious of their right to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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