9911796707
TMI Blog2002 (9) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... have filed this Misc. application praying for payment of interest on delayed refunds. 2. The facts of the case briefly stated are that the applicant filed three refund claims due to exports under Bond as per Notification No. 85/87 dated 1-3-87. The refund claims were allowed. 3. The applicants promptly prepared a work sheet giving details of refund of duty and interest due from the date of expi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, submits that since interest is due, therefore, the same may be ordered to be paid to the applicant. 5. Shri Mewa Singh, Ld. DR submits that the impugned order which allowed all the three appeals did not make a mention of payment of interest on the amount of the refund. He submits that it is not a plain case of refund of duty paid which was to be refunded but of the Modvat credit. He su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be payable on the whole of the amount, including the amount already paid". 7. We note that Modvat credit rules were framed by the Central Govt. not in pursuance of Section 11A but under provisions of Section 37B and, therefore, payment of interest does not become due as the refund of duty was not in terms of Section 11A of Central Excise Act, 1944. We further note that the Hon'ble Supreme Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osts". 8. Since in the instant case, the refund arose because of non-utilisation of the Modvat credit taken on inputs used in the final product which was finally exported. We find that this is not a case covered by Section 11A and therefore, will not be governed by the provision of interest under Section 11AB of the Central Excise Act, 1944. In the circumstances, the Misc. application is rejected ..... X X X X Extracts X X X X X X X X Extracts X X X X
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