2007 (3) TMI 553 - AT - Customs

Summary

Issues:
Claim for interest against delayed demand of refund.

Analysis:
In this case, the appellants had filed a refund claim dated 13-9-94, which was initially held to be time-barred. However, a subsequent Tribunal's order dated 5-5-2000 allowed the refund, determining that the claim was not time-barred. The current litigation revolves around the appellants' claim for interest due to the delayed demand of refund. The claim for interest was rejected on the basis that all necessary documents were not submitted in a timely manner, specifically highlighting the submission of the Chartered Accountants' Certificate on 3-4-2001.

Upon reviewing the submissions from both sides, it was noted that while the original refund application mentioned the submission of the Chartered Accountant's Certificate, the Modvat Certificate issued from the Range was not initially submitted but was provided later along with a letter dated 26-7-05/9-8-05. The appellant argued that interest should be payable from the date of filing the refund claim, relying on the decision of the Honourable High Court of Rajasthan in the case of J.K. Cement Works v. Asstt. Commissioner of Central Excise & Customs. The appellant's counsel acknowledged that interest should be limited from the date when all necessary documents were submitted, i.e., 9-8-95.

Considering the precedents and the fact that all required documents were submitted by 9-8-95, the impugned order was set aside, and the Revenue was directed to pay interest for the period from 10-8-95 till 23-4-2001. The appeal was allowed on these terms, ensuring that the appellant receives the appropriate interest for the delayed refund demand.

This judgment clarifies the entitlement to interest in cases of delayed refund demands, emphasizing the significance of timely submission of all necessary documents to support the refund claim. The decision underscores the legal principle that interest accrues from the date of filing the refund claim, provided that all essential documentation is promptly provided, as demonstrated in this particular case.