TMI Blog2018 (2) TMI 1392X X X X Extracts X X X X X X X X Extracts X X X X ..... for grant of interest is Section 11 BB, which mandates that if the refund is not sanctioned within three months from the date of its filing, the said refund should be paid along with interest at the prescribed rate. Further, Section 35 FF of the Act provides that in case of favourable order by the Appellate Authorities, the refund should be sanctioned within three months from the date of communication of such order to the adjudicating authority - In this case, since the order was not communicated to the appellant or the Adjudicating Authority on 26.12.2016, the claim of the appellant for interest from such date, should not merit consideration. The appellant should be entitled for refund of interest from the date of seizure of currency, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant. Besides, penalties were also imposed under various provisions of Central Excise Act and Rules. Feeling aggrieved with the said adjudication order dated 27.03.2009, the appellant preferred appeals before the Tribunal. Vide final order dated 26.12.2016, the Tribunal had set aside the adjudication order and allowed the appeals in favour of the appellants. As a consequence of the favourable order, the appellants filed the refund application on 31.01.2017, claiming refund of amount deposited during the course of adjudication and as per the directions of the Tribunal vide stay order dated 3.1.2011. The refund application was allowed in favour of the appellant on 3.5.2017. Since the refund sanctioning authority has not considered the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of currency by the Department, the appellant claims that they should be entitled for refund from the date of such deposit i.e. 21.09.2015, till its actual refund by the Department. In this context, I find that the Hon ble Allahabad High Court by order dated 26.04.2017 held that on the amount, which was illegally confiscated by the Revenue and was ultimately refunded, the assessee/appellant is entitled to interest and that the department is under obligation to pay the same. Accordingly, the Hon ble High Court directed the Revenue to pay interest on the confiscated amount for the entire period, for which the amount remained in the custody of the Revenue. Since on an identical issue, the Hon ble Allahabad High Court has ruled that the Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gards the claim of the appellant that interest should accrue from the date of the order passed by the Tribunal, I find that Section 35 FF ibid existed, at material time, clearly provided that the date should commence from the date of communication of the order of the Appellate Authority to the Adjudicating Authority. In this case, since the order was not communicated to the appellant or the Adjudicating Authority on 26.12.2016, the claim of the appellant for interest from such date, should not merit consideration. 6. In view of the above discussion and analysis, I am of the considered opinion that as per the judgement of the Allahabad High Court in the case of RHL Profile Ltd. (Final Order dated 26.4.2017), the appellant should be en ..... X X X X Extracts X X X X X X X X Extracts X X X X
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