TMI Blog2016 (2) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... from the said date, the appellants are also eligible for interest till the date of refund. - Decided in favor of assessee. - Appeal No. : C/11117/2015 - Order No. A/10110 / 2016 - Dated:- 18-2-2016 - MR. P.M.SALEEM, MEMBER (TECHNICAL) For the Petitioner : Shri Willingdon Christian, Advocate For the Respondent : Shri Tapas Kumar Sikdar, Authorised Representative ORDER PER : MR. P. M. SALEEM In the present appeal, the appellant herein M/s Indian Oil Corporation Ltd. is before us on the issue of interest on refund. 2. The brief facts of the case are that the appellant had filed a refund claim of ₹ 21,20,013/- on 23.09.2011 before the Adjudicating Authority, arising out of finalization of a provisional ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refund arose due to finalization of provisional assessment and therefore, as per Section 18 (2) (4) of the Customs Act, 1962, interest should be paid if refund of the excess amount of duty paid is not refunded within 3 months from the date of final assessment. He relies upon the decision of this bench of the Tribunal in the case of Himson Textile Engg. Inds. P. Ltd. vs CCE, Surat-I 2006 (72) R.L.T 827 (CESTAT-Mum.), which is on identical issue and the decision of the Hon ble High Court at Allahabad in the case of Siddhant Chemicals vs. Union of India 2014 (307) E.L.T. 44 (All.). 4. On the other hand, the Learned Authorised Representative for Revenue submits that the refund was sanctioned in this matter consequent to an earlier order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nally, and if not done so, then the interest shall be paid till the date of refund of such amount. In the instant case, it is undisputed that provisional assessment was finalized vide letter no. F.No. V Misc(30)23/IOCL/B.E./2005 dated 22.02.2008. Therefore, the appellants are eligible for refund consequent to the said finalization. As the refund is not sanctioned within 3 months from the said date, the appellants are also eligible for interest till the date of refund. We also find support for our above conclusion in the decision of this bench of the Tribunal in the case of Himson Textiles Engg. Inds. P. Ltd. (supra), which is reproduced below:- The dispute between the appellant and the revenue was settled by the Tribunal in favour of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect the Deputy Commissioner to quantify the interest in accordance with the provisions of Section 11-BB and in the light of the various precedent decisions of the Tribunal on the said point. 8. The High Court at Allahabad also held the same view in the case of Siddant Chemicals (supra) as follows:- 10. A bare perusal of Section 11BB of the Act, reveals that the payment of interest is not depended on the claim by the party. It is automatic. In case, if refund is not paid within three months from the date of receipt of the application, the authority concerned is under obligation to pay the interest. In Section 11 BB of the Act the word used is there shall be paid to the applicant. It means that it is not discretionary and has to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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