2007 (1) TMI 381 - AT - Central Excise

Summary

Issues involved: Refund claim, interest on delayed refund, appeal against order-in-original, appeal against order-in-appeal, statutory provisions of Sec. 11BB of the Central Excise Act, 1944.

Refund Claim Issue:
The assessee filed a claim for refund of Rs. 1,34,805/- on 16-12-99, which was initially adjusted against Government dues. The Commissioner (Appeals) allowed the appeal, reducing the Government dues to Rs. 5,68,445/-, and held that the assessee was entitled to the refund amount with interest u/s 11BB of the Central Excise Act, 1944 from 15-3-2000. The Revenue appealed against this decision.

Interest on Delayed Refund Issue:
The Asstt. Commissioner sanctioned the refund claim without interest, citing the Revenue's appeal against a previous order. The Commissioner (Appeals) rejected the appeal by the assessee, leading to a separate appeal by the assessee.

Statutory Provisions of Sec. 11BB Issue:
Sec. 11BB of the Central Excise Act, 1944 mandates interest on delayed refunds. The Tribunal held that the duty ordered to be refunded was not actually refunded within the stipulated time, as it was adjusted against Government dues. The Tribunal agreed with the assessee that interest was due from 15-3-2000, dismissing the Revenue's appeal and upholding the order in favor of the assessee.

Conclusion:
The Tribunal rejected both appeals, upholding the decision to grant the refund amount with interest to the assessee as per the provisions of Sec. 11BB. The assessee's appeal was dismissed due to the lack of grounds for condoning the delay in filing the appeal.