TMI Blog2005 (12) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... t upon the Order No. A/243/WZB/2005/C-I, dated 18-3-2005 [2005 (191) E.L.T. 865 (Tribunal)] of the Tribunal. The Adjudicating Authority has also rejected the claim of the appellant for interest on refund of pre-deposit from the date of Tribunal s Order on the ground that the interest on delayed refunds are governed under Section 11BB of the Central Excise Act, 1944 and as per this Section interest was only due after expiry of time limit of three months from the date of filing of the application. He also averred that the claim was filed on 4-4-2005 and the same was decided within the time limit prescribed under the said Section and therefore, he rejected the claim of interest on refund of pre-deposit. 3. Being aggrieved by the aforesaid or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for recovery of the same nor adjustment/appropriation against any refund can be permitted till disposal of the stay application as held by the Tribunal in the case of Ispat Industries Ltd. v. CCE - 2005 (182) E.L.T. 109 (Tribunal-Mumbai); that such action is contrary to the Board s Circular No. 396/29/98-CX., dated 2-6-1998. They also relied upon the following decisions in support of their contention that recovery or adjustment of any amount cannot be made when such order is under challenge in appeal : (1) National Steel Industries Ltd. - 2001 (134) E.L.T. 616 (M.P.) (2) CCE, Jaipur-I v. Instrumentation Ltd. - 2002 (140) E.L.T. 518 (Tri.-Del.) (3) M/s. HPCL v. CCE - 2003 (156) E.L.T. 404 (Tri.-Bang.) (4) M/s. Vijai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccepted. They have requested for payment of Rs. 3,41,625/- which was appropriated out of the pre-deposited amount; Rs. 47,144/- interest at 18% per annum on Rs. 10,17,222/- delayed payment from date of Tribunal s order to 9-6-2005 date of issue of cheque; interest at 12% on the appropriated amount of Rs. 3,41,625/- from 9-6-05 until date of issue of cheque; and interest at 12% per annum on the interest amount of Rs. 47,155/- from 9-6-05 till date of issue of cheque. 7. I have carefully gone through the facts of the case and the submissions made by the appellant. 8. First issue raised by the appellant is that the refund of pre-deposited amount should have been granted with interest from the date of Tribunal s order dated 18-3-05. The app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been paid to them within three months from the date of Tribunal s order. Therefore, question of interest on interest does not arise. Also as regards interest on interest, Hon ble Tribunal (Larger Bench) in the case of M/s. Sun Pharmaceuticals Industries Ltd., v. Commissioner of Central Excise, Chennai reported in 2005 (185) E.L.T. 253 (Tri.-LB) has held that interest on delayed payment of interest not permissible under Central Excise Act, 1944 and Rules made there under for want of any specific provision in the Act or Rules - Tribunal has no power to award such an interest to assessee. In view of the above decision also, no interest on delayed payment of interest can be allowed. 11. The appellant has contended that the Deputy Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal (LB) in the case of M/s. Ramavision Limited v. Commissioner of Central Excise, Meerut, 2004 (165) E.L.T. 518 (Tri.-LB) has held that for recovery of dues, adjustment of refund amounts towards duty liability under order passed by Commissioner (Appeals) even before expiry of three months time due for filing appeal against order of Commissioner (Appeals) is not correct. When specific direction issued by Dy. Commissioner to refund entire amount, the department cannot adjust amount of Rs. 2,78,623/- towards duty liability out of amount due as refund without seeking permission from Tribunal. In light of the above cases, the outstanding dues against the Orders which have been challenged in the CESTAT can not be adjusted without seeking permis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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