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M/s Finolex Cables Ltd. Versus CCE, Goa

2016 (2) TMI 637 - CESTAT MUMBAI

Interest on delayed payment of interest - Held that:- Since there is no provision in the Act to allow the interest on delayed payment of interest the appeal is dismissed. - Appeal No. E/349/11 - A/85223/16/SMB - Dated:- 7-1-2016 - Raju, Member (T) For the Appellant : Shri Rajesh Ostwal, CA For the Respondent : Shri R K Maji, Asst. Commr. (AR) ORDER Per Raju The appellants M/s Finolex Cables Ltd. are seeking interest on the delayed payment of interest on the delay in sanction of refund. 2. Learne .....

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amp; Proteins Ltd. vs. CCE 2007 (211) ELT 375 3. Learned A.R. relied on the orders. He further relied on the decision of Larger Bench in case of Sun Pharmaceuticals Industries 2005 (185) ELT 253 (LB) where it has been held that interest on interest can not be sanctioned. He also relied on following discussions for this purpose. (i) CCE, Surat vs. Mahavir Crimpers 2013 (296) ELT 97 (i) VIRCHOW Laboratories vs. CCE 2012 (280) ELT 133 He also relied on the decision of Hon'ble Supreme Court in c .....

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urt in case of Sandvik Asia Ltd. was overturned by the Hon'ble Supreme Court. In that case, under Income Tax Act, the Hon'ble Supreme Court held that the assessees are entitled to interest on delayed payment of interest. Thus no reliance can be placed on the decision of Tribunal in case of Sun Pharmaceuticals Industries. 4.2 I find that there are decisions of Tribunal which allow the interest on delayed payment of interest and there are other which disallow the same. I find that Hon' .....

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paid late. Since such claim does not fall within the statutory provisions contained in Section 11BB of the Act, in exercise of writ jurisdiction, we would not direct payment of such interest at the statutory rate but would provide for reasonable interest looking to the present trend. Under the circumstances, the petition is allowed. The respondents shall pay simple interest at the rate of 9% per annum on the sum of ₹ 1,06,12,678/- for the period between 1-4-2003 to 23-9-2004 which shall be .....

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considering the rival submissions, we are of the view that the issue agitated before us is already covered in favour of the Revenue by the Tribunal's Larger Bench decision in Sun Pharmaceuticals case (supra) wherein it was held that interest on delayed payment of interest was not permissible under the Central Excise Act and/or the rules made thereunder. The Larger Bench found that there was no specific provision in the Act or the rules for payment of such interest. It therefore held that th .....

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