TMI Blog2019 (5) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 6,84,274/- for delay in refunding the interest to the Appellant on the ground that the interest on delayed refund was immediately payable alongwith the refund amount on 02.08.2012 but was actually paid on 16.07.2015. The prayer of the Appellant for grant of interest on delayed payment of interest is allowed - Appeal allowed - decided in favor of appellant. - Excise Appeal No. 53558 of 2018 [SM] - Final Order No. 50699/2019 - Dated:- 17-5-2019 - MR. AJAY SHARMA, MEMBER (JUDICIAL) Shri Jitin Singhal, Advocate for the Appellant Shri K. Poddar, Authorised Representative for the Respondent ORDER AJAY SHARMA The instant Appeal has been file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the matter of Ranbaxy Laboratories Ltd. 2011 (273) ELT 3 (SC) held that the Appellant is entitle to claim interest after three months from the date of filing of refund claim till its realisation. Since again there was inordinate delay in refund of interest to the Appellant therefore the Appellant has to file another refund claim for refund of interest of ₹ 6,84,274/- for delay in refunding the interest to the Appellant on the ground that the interest on delayed refund was immediately payable alongwith the refund amount on 02.08.2012 but was actually paid on 16.07.2015. As a result, another show cause notice dated 08.12.2015 was issued to the Appellant as to why the refund of interest amounting to ₹ 6,84,274/- shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sonic Energy India Co. Ltd. Vs. CCE, Vadodara-II; 2018(12) GSTL 180 (Tri.-Ahmd.), (vii) Kerala Chemicals Proteins Ltd. Vs. CCE, Cochin; 2007(211) ELT 259 (Tri.-Bang.) and (viiii) Munch Food Products Ltd. Vs. S.K. Sheoran; 2015 (325) ELT 31 (Del.). 6. The learned Authorised Representative, on the other hand, reiterated the findings recorded in the impugned order and prayed for dismissal of Appeal. According to him there is no provision under law for payment of interest on interest amount and hence it cannot be granted. In support of his submissions learned Authorised Representative cited the decision of the Tribunal in the matters of Vindhyachal Air Products Pvt. Ltd. Vs. CCE, Bhopal; 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through the decisions cited by the learned Authorised Representative as well as by the learned counsel. In Income Tax Act also, there is no provision for grant of interest on interest, but the Hon ble Gujarat High Court in the matter of D.J. Works vs. Dy. CIT; (1992) 195 ITR 227 (Guj.) has held that although there is no provision for payment of interest on the interest amount, but it would be payable at the same rate at which the excess amount carries interest. The aforesaid decision was further followed by the Hon ble High Court in the matter of Chimanlal S. Patel (supra) and it was held that the Revenue is liable to pay interest on the amount of interest which it should have paid to the assesee but has unjustifiably failed to do so. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by them. In view of these judgments, the prayer of appellant for grant of interest as well as interest on interest is allowed. The original authority shall calculate the interest as well as interest on interest on interest and make the payment within one month from the receipt of this Order. Appeal is allowed on the above terms. 8. According to me, the decisions cited by the learned Authorised Representative are not applicable in the facts of the present matter, rather the decision of the Tribunal in Kerala Chemicals (supra) is applicable on the facts of this case since the same is in accordance with the decisions of the Hon ble Supreme Court and the Hon ble Gujarat High Court as mentioned in earlier paragraphs althoug ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
