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Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2004 (6) TMI AT This

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2004 (6) TMI 362 - AT - Central Excise

Issues:
1. Entitlement to interest under Section 11BB of the Central Excise Act, 1944.
2. Interpretation of the provisions related to refund claims post-amendment of Section 11B.

Analysis:
1. The case involved a dispute regarding the entitlement to interest under Section 11BB of the Central Excise Act, 1944. The appellant had filed a refund claim under Section 11BB for a specific period, which was rejected by the Asstt. Commissioner. The Commissioner observed that the appellant was entitled to interest from the date of expiry of three months from the enactment of Section 11BB. The appellant challenged this decision before the Tribunal, arguing that no interest accrued as the claim was filed after the receipt of the Tribunal order and was sanctioned within three months. The Tribunal held that the order passed by them was deemed to be an order under Section 11B, and interest would be applicable from the expiry of three months from the enactment of Section 11BB. The Commissioner's decision was upheld, and the appeal by the Revenue was rejected.

2. The second issue revolved around the interpretation of provisions related to refund claims following the amendment of Section 11B of the Central Excise Act. The Revenue contended that post-amendment, an assessee was required to file a formal refund application even if the refund arose from an appellate order. The appellant argued against this, stating that the Tribunal's order should be treated as an order under Section 11B, and interest should accrue accordingly. The Tribunal agreed with the appellant, emphasizing that the Tribunal's order was deemed to be under Section 11B for the purpose of interest calculation. Therefore, the requirement for the assessee to file a formal refund application was not applicable in this case. Consequently, the appeal by the Revenue was rejected based on this interpretation.

In conclusion, the Tribunal upheld the entitlement to interest under Section 11BB and interpreted the provisions related to refund claims post-amendment of Section 11B in favor of the appellant, rejecting the appeal filed by the Revenue.

 

 

 

 

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