TMI Blog2009 (11) TMI 763X X X X Extracts X X X X X X X X Extracts X X X X ..... interest, the interest on the refund, which was payable to the respondent cannot be denied. Appeal dismissed - decided against Revenue. - E/3774/2006-SM - 1521/2009-SM(Br)(PB) - Dated:- 20-11-2009 - Shri Rakesh Kumar, J. Shri S.N. Srivastava, DR, for the Appellant. Shri Hemant Bajaj, Advocate, for the Respondent. ORDER This is Revenue s appeal against order-in-appeal No. 417-CE/APPL./KNP/2006 dated 31-8-2006 passed by CCE (Appeals), Kanpur. The facts leading to this appeal are, in brief, as under :- 1.1 The respondent on 11-12-2001 filed a refund claim of Rs. 1,05,73,237/-. On 3-6-94, the Assistant Jurisdictional Assistant Commissioner passed the refund order sanctioning the refund claim and the cheque for refund amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CCE (Appeals), Kanpur vide impugned order-in-appeal dated 31-8-06 allowed the appeal permitting interest for the period from 14-7-04 till the date of payment. It is against this order that the present appeal has been filed by the respondent. 2. Heard both the sides. 2.1 Shri S.N. Srivastava, the learned Departmental Representative reiterated the grounds of appeal in the revenue s appeal which are reproduced below :- In this case, after a particular amount was ordered to be refunded, a portion of the same was adjusted against an amount of penalty and interest confirmed against the assessee by another order. Later on, the order imposing such interest and penalty was vacated. As a result, the amount adjusted from the assessee s refun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this claim and on this basis, the interest on the refund claim would be admissible to the respondent w.e.f. 10th March, 2002, but still the Commissioner (Appeals) has allowed the interest for the period from 14-7-04 to 19-7-05, while in any case, would be admissible. Hon ble Rajasthan High Court in the case of J.K. Cement Works v. Asstt. Commissioner of Central Excise Customs reported in 2004 (170) E.L.T. 4 (Raj.), para 21 of the judgment has held that :- Consequence of not paying refund within three months of making such application under Section 11B is that the Revenue becomes liable to pay interest on amount of refund with effect from the expiry of three months from the date of application until date of actual payment. The liability ..... X X X X Extracts X X X X X X X X Extracts X X X X
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