2006 (8) TMI 419 - AT - Central Excise

Summary

Issues:
Claim for interest on refunded amount with reference to original dates of refund claim.

Analysis:
The appellant sought interest on the refunded amount based on the original dates of the refund claim. The appellant's representative argued that even though the refund was granted within three months of filing the claim, interest should be paid. The Departmental Representative opposed the claim, stating that the refund was processed within the stipulated time. The appellant relied on a decision from the Hon'ble Rajasthan High Court, while the Departmental Representative argued that the facts of that case were different.

The Tribunal examined the case records and the cited decision. It noted that the issue in the cited case was different as it related to payment to the Consumer Welfare Fund, unlike the present case where the refunded amounts were adjusted against confirmed duty payable by the appellants. The Tribunal also considered a Supreme Court decision, emphasizing the need for fresh applications for refunds to ensure that the burden was not passed on to others. In this case, the refunded amounts were adjusted against confirmed demands, and the refund only became due after the Tribunal's order. The appellants correctly filed a fresh application for refund, which was granted within three months of application, in compliance with statutory provisions. Therefore, the Tribunal concluded that no interest was payable as the amounts were refunded within the prescribed time frame.

In light of the above analysis, the Tribunal rejected the appeal, finding no grounds for interference with the impugned orders. The decision was dictated and pronounced in open court.