2006 (10) TMI 279 - AT - Central Excise

Interest - Delay in refund - Review - Grounds of - Precedent - Co-ordinate Bench, jurisdiction

Summary

Issues:
Claim for interest on refund amount denied by the department despite Tribunal's order.

Analysis:
The case revolves around the applicant's claim for interest on a refund amount of Rs. 2,53,81,156.02, which was denied by the department despite the Tribunal's order dated 12-1-2005. The applicant initially claimed a refund of duty amounting to Rs. 4,78,45,990.30 with interest, which was allowed by the Commissioner (Appeals) but later denied by the department. The Tribunal dismissed the Revenue's appeal against the Commissioner (Appeals) order and upheld the applicant's cross objections regarding non-payment of refund and interest. However, the interest remained unpaid, leading the applicant to file a miscellaneous application seeking the Tribunal's direction to comply with the interest payment order. The Tribunal dismissed the application stating there was no specific order regarding interest payment by any authority, and hence, no direction could be issued.

The applicant contended that they had specifically prayed for interest along with the refund in their appeal memorandum to the Commissioner (Appeals) and cross-objections to the Tribunal. They argued that since the appeal was allowed by the Commissioner (Appeals) and cross-objections upheld by the Tribunal, the interest should be considered allowed as well. The applicant cited a Rajasthan High Court decision and a Circular by the Central Board of Excise and Customs, emphasizing the automatic and mandatory nature of interest grant once the refund is admitted by the department. They sought the Tribunal's direction to the department to pay the interest due.

However, the Tribunal found that there was no specific order for interest payment by any authority, including the adjudicating authority, Commissioner (Appeals), Tribunal, or Hon'ble Gujarat High Court. The Tribunal noted that the applicant had already brought up the Rajasthan High Court decision and the Board's Circular during the first miscellaneous application, and no new facts had emerged. The Tribunal reiterated that interest should be automatically granted as per the Rajasthan High Court decision and the Board's Circular. It advised the applicant to seek interest from the department and, if denied, follow the appeal procedure. The Tribunal distinguished the recent case cited by the applicant, where the Commissioner (Appeals) had ordered interest payment, which was upheld by the CESTAT, unlike the present case with no such order.

Ultimately, the Tribunal dismissed the miscellaneous application, emphasizing that there was no order for interest payment by the Commissioner (Appeals) or the Tribunal in their previous orders, as established in the Tribunal's earlier decision on the first miscellaneous application filed by the applicant.

In conclusion, the Tribunal upheld its earlier decision and dismissed the applicant's claim for interest on the refund amount, emphasizing the lack of specific orders for interest payment by any relevant authority in the case.