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TMI Blog2024 (2) TMI 612X X X X Extracts X X X X X X X X Extracts X X X X ..... h a refund claim had been filed by the appellant on 02.06.2009. The said refund claims were rejected by the adjudicating authority, namely the Assistant Commissioner, Central Excise and Service Tax, Division Patna vide Order in Original No. 3 and 4- Refund/dated 04.03.2009 and 02.02.2010. In appellate proceedings, the learned Commissioner (Appeals), vide orders No. (i) 110/Pat/C.Ex/Appeal/2010 dated 30.08.2010 and (ii) 96/Pat/C.Ex/Appeal/2012 dated 07.05.2012 allowed the two appeals. The department preferred appeal against the impugned order of the learned Commissioner (Appeals), before the Tribunal while the appellant filed a revision application under Section 305EE to include the cess amount in the refund claim. The Tribunal as well as the Revisionary Authority remanded the case to Commissioner (Appeal). Subsequently, the Commissioner (Appeals), allowed the refund claims including cess and set aside the order of the learned adjudicator vide Order in Appeal No. 217/Pat/C.Ex/Appeal/2012 dated 07.05.2012. Refund claim thereafter got to be sanctioned by the Assistant Commissioner, for an amount of Rs.1,08,85,138/- vide Order in Original No. 04/Refund/AC/Patna Division, 2013 dated 04. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on B to Section 11B of Central Excise Act. They submitted that Dy. Commissioner had rejected their claim of interest on delayed refund quoting the clause (ec) inserted to explanation to Section 11B of Central Excise Act (w.e.f. 11.05.2007). They submitted in this regard that interest of delayed refund is governed by Section 11BB which stated that if refund is not granted within three months from the date of receipt of application, interest shall be paid from the date immediately after the expiry of three months from the date of receipt of application till the date of refund of such duty. They also submitted that Explanation to Section 11BB clearly mentions that any order of refund made by Commissioner (A), CESTAT or any court against an order of the AC or DC shall be deemed to be an order passed under sub-section (2) of section 11B for the purpose of section 11BB; that the legislative intent behind adding this proviso in any case, the date from which interest becomes payable under section 11BB should not be postponed and this intention of legislature has been confirmed by Hon'ble Supreme Court in Ranbaxy case also, that Relevant date as defined in explanation to Section 11B is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Laws (Amendment) Act, 1991, such application shall be deemed to have been made under this sub-section as amended by the said Act and the same shall be dealt with in accordance with the provisions of sub-section (2) substituted by that Act: Provided further that the limitation of one year shall not apply where any duty and interest, if any, paid on such duty has been paid under protest (2) If, on receipt of any such application, the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise is satisfied that the whole or any part of the duty of excise and interest, if any, paid on such duty paid by the applicant is refundable, he may make an order accordingly and the amount so determined shall be credited to the Fund: Provided that the amount of duty of excise and interest, if any, paid on such duty as determined by the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise under the foregoing provisions of this sub-section shall, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to - (a) xxxxxx (b) xxxxxx (c) xxxxxx (d) xxxxxx (e) xxxxxx (f) the duty of excise and intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of certain goods, if after the manufacturer has made the payment on the basis of such rate for any period but before the expiry of that period such rate is reduced, the date of such reduction; (e) in the case of a person, other than the manufacturer, the date of purchase of the goods by such person; (ea) in the case of goods which are exempt from payment of duty by a special order Issued under sub-section (2) of section 5A, the date of issue of such order; (eb) in case where duty of excise is paid provisionally under this Act or the rules made there under, the date of adjustment of duty after the final assessment thereof; (ec) in case where the duty becomes refundable as a consequence of judgment, decree, order or direction of appellate authority, Appellate Tribunal or any court, the date of such judgment, decree, order or direction; (f) in any other case, the date of payment of duty. " "11BB- Interest on delayed refunds. - If any duty ordered to be refunded under sub-section (2) of Section 11B to any applicant is not refunded within three months from the date of receipt of application under sub-section (1) of that section, there shall be paid to that applicant inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty or the Court, then for the purpose of this Section the order made by such higher Appellate Authority or by the Court shall be deemed to be an order made under sub-section (2) of Section 11B of the Act. It is clear that the Explanation has nothing to do with the postponement of the date from which interest becomes payable under Section 11BB of the Act. Manifestly, interest under Section 11BB of the Act becomes payable, if on an expiry of a period of three months from the date of receipt of the application for refund, the amount claimed is still not refunded. Thus, the only interpretation of Section 11BB that can be arrived at is that interest under the said Section becomes payable on the expiry of a period of three months from the date of receipt of the application under sub-section (1) of Section 11B of the Act and that the said Explanation does not have any bearing or connection with the date from which interest under Section 11BB of the Act becomes payable. 10. It is a well settled proposition of law that a fiscal legislation has to be construed strictly and one has to look merely at what is said in the relevant provision; there is nothing to be read in; nothing to be implie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e not required to wait for instructions from any superior officers or to look for instructions in the orders of higher appellate authority for grant of interest. Simultaneously, Board would like to draw attention to Circular No. 398/31/98-CX., dated 2-6-98 [1998 (100) E.L.T. T16] wherein Board has directed that responsibility should be fixed for not disposing of the refund/rebate claims within three months from the date of receipt of application. Accordingly, jurisdictional Commissioners may devise a suitable monitoring mechanism to ensure timely disposal of refund/rebate claims. Whereas all necessary action should be taken to ensure that no interest liability is attracted, should the liability arise, the legal provision for the payment of interest should be scrupulously followed." ( Emphasis Supplied ) 12. Thus, ever since Section 11BB was inserted in the Act with effect from 26th 1995, the department has maintained a consistent stand about its interpretation. Explaining the intent, import and the manner in which it is to be implemented, the circulars clearly state that the relevant date in this regard is the expiry of three months from the date of receipt of the application u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 11B; Section 11B (1) speaks of three months from relevant date and this date, where the refund because allowable because of appellant order is such date as per explanation "ec" to Section 11B of the Act. In the words, Section 11B (2) of the Act on an application made under section 11B (1). Similarly 11B (1) and 11BB talks about relevant date which is the date of passing Appellant order, as per insertion made in explanation to Section 11B of the Act. 13. At this stage, the contention of the Appellant that the intent of legislature in inserting this Section is only to extend the date of filing the refund is not correct. An example of classification dispute was given, where duty becomes refundable because of Appellate order and no refund application could be filed within one year from the relevant date before Assistant Commissioner, Central Excise. I observe that this could be one of the reasons of extending the relevant date. However the full impact of this provision has to be given and it cannot be restricted to such a narrow interpretation as contended. It is settled legal proposition that a natural and full meaning has to be given to the provisions. Thus the impact of clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not pertaining directly to manufacturers, provisional payments of duty, judicial ruling and the like. The usage of the term "relevant date" therefore, does not have any impact with reference to the date of proclamation of the admissibility of the refund claim. It is therefore obvious that what clause (ec) of Section 11B refers to, is only to enhance the limitation period, to a case where the duty becomes payable as a result of an order of the court or a direction from the appellate authority. We therefore fail to find any merit in the said interpretation of the learned Commissioner (Appeals). 8. In view of the law as laid down by the Hon'ble Apex Court in the case of Ranbaxy Laboratories Ltd. which has been followed by the apex court in a catena of cases viz. Union of India Vs. Hamdard (WAQF) Laboratories, 2016 (333) ELT 193 (S.C) Manisha Pharmo Plast Pvt. Ltd. Vs. Union of India 2020 (374) ELT 145 (S.C) we are of the view that the order of the lower authority is not legal and proper. The courts have repeatedly adopted the said- ruling of the Supreme Court. Thus, the Hon'ble Gujarat High Court in the case of Kamakshi Tradexim (India) Pvt. Ltd. Vs. Union of India 2017 (351) ELT 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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