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TMI Blog2019 (3) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... galuru (for short, 'Appellate Tribunal'). The Appellate Tribunal by this impugned order has allowed the respondent's appeal against the common order dated 21.9.2017 by the Commissioner of Central Taxes (Appeals-1) in Appeal Nos. 1091 to 1100 of 2017. The appellant- revenue has proposed the following as substantial questions in these appeals: "1. Whether on the facts and in the circumstances of the case CESTAT was correct in merely setting aside the impugned order (Commissioner - Appeals) and allowing the appeal without assigning any reasons and recording any finding on the controversy and recorded perverse finding? 2. Whether on the facts and in the circumstances of the case, CESTAT was correct in allowing the appeal by giving reference t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide its separate orders dated 21.6.2017 allowed such claims for refund as provided for under Rule 5 of the CENVAT Credit Rules 2004 read with Notification No.27/2012-CE(NT) dated 18.6.2012 (for short, 'CENVAT Credit Rules & Notification dated 18.6.2012'). However, the Assistant Commissioner, Division C, Bangalore did not grant interest for the delay in refund. 3. The respondent, being aggrieved by these orders, insofar as refusal of interest for the delay in the refund, filed Ten appeals before the Commissioner of Central Taxes (Appeals-1), who dismissed these Ten Appeals in No. 1091-1100 of 2017 holding that the respondent would not be entitled for payment of interest because the provision for payment of interest on delayed refund under S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Industries Ltd., reported in 2010(259) ELT 356 (GUJARAT). The Appellate Tribunal also observed that the decision of the High of Gujarat was challenged before the Hon'ble Supreme Court but such challenge was unsuccessful. 5. The learned counsel for the appellant - revenue argued that payment of interest on delayed refund is payable under Section 11BB of the Central Excise Act, 1944 (for short, the 'Act'), if the claim for refund is under Section 11B of the Act. However, the present claim by the respondent is for the refund of the unutilized CENVAT credit under the CENVAT Credit Rules & Notification dated 18.6.2012. As such, the Department/Revenue cannot be called upon to pay interest for delay in refund of the unutilized CENVAT credit under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has not recorded any finding on the respondent's eligibility to interest under section 11BB of the Act, if interest is payable, the manner of computation of interest, the period of commencement for computing interest and the quantum of refund on which interest is to be quantified. As such, the impugned order is perfunctory and contrary to law. 7. The learned Counsel for the respondent, on the other hand, submitted that this question whether interest on delayed refund of unutilized CENVAT credit as contemplated under Rule 5 of the CENVAT Credit Rules & Notification dated 18.6.2012 would be permissible under Section 11BB of the Central Excise Act has been considered by the High Court of Madras as well as the High Court of Gujarat. In fact, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification dated 18.6.2012, did not accept the canvas on behalf of the revenue that the scheme for refund of unutilized CENVAT Credit is a special beneficial scheme with self contained procedure providing for the manner and method of its implementation, and hence any refund claimed under the Rules would be governed only by the provisions of the Scheme and the general provisions of Section 11BB of the Central Excise Act cannot be resorted to. The High Court of Gujarat concluded that the CENVAT credit is nothing but duty paid by the supplier of inputs which are dutiable goods manufactured by the supplier or dutiable services rendered by the service provider; when such goods/services are utilized for further manufacture or providing service, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 5 of the CENVAT Credit Rules & Notification dated 18.6.2012 is distinct and separate from the obligation under Section 11B of the Act in the light of the reasoning in the aforesaid decisions. This Court concurs with the reasons assigned in the aforesaid decisions to hold that the revenue would be obliged to pay under interest for the delayed refund as contemplated under Section 11BB of the Act even for the delayed refund of the Unutilized CENVAT credit under Rule 5 of the CENVAT Credit Rules & Notification dated 18.6.2012. There is also considerable force in the submissions on behalf of the respondent that in view of the decision of the Hon'ble Supreme Court Ranbaxy Laboratories vs. Union of India reported in 2011 (273) ELT 3(SC) that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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