2008 (2) TMI 695 - AT - Central Excise

Summary

Issues:
1. Dispute over the relevant date for the payment of interest on pre-deposited amount.
2. Interpretation of the relevant date for the purpose of refund of pre-deposit.
3. Consideration of the date of receipt of the order as the relevant date for refund.
4. Determination of interest liability based on the date of receipt of the order.

Analysis:
The Appellate Tribunal, in this case, dealt with the issue of the relevant date for the payment of interest on the pre-deposited amount. The Revenue appealed against the Commissioner (Appeals) decision accepting the assessee's contention regarding interest payment. The core dispute revolved around the relevant date within 3 months from the order of the Tribunal for sanctioning the refund. The Tribunal analyzed various decisions of the Hon'ble Supreme Court and the Tribunal itself, along with the Board's circular, emphasizing the importance of the date of the order. It was noted that the Act, Rules, and relevant provisions were silent on determining the relevant date, leading to the consideration of the date of receipt of the order.

The Tribunal highlighted the potential chaos if the date of receipt was not considered, as orders might remain unissued or unreceived by the Department, causing delays in refunding pre-deposits. Therefore, the Tribunal opined that the date of receipt of the order should be deemed the relevant date for refund purposes. Additionally, if the assessee informs the Revenue about the order, that date should be considered as the date of knowledge for the Department to sanction the refund within 3 months, irrespective of physical receipt of the order.

In the specific case under review, the order was received on 6-9-05, and the refund was issued on 6-12-05 within the stipulated period, leading the Tribunal to conclude that no interest was payable. Consequently, the appeal filed by the Revenue was allowed, and the decision was pronounced on 21-2-2008. The judgment emphasizes the significance of the date of receipt of the order in determining interest liability on pre-deposited amounts, providing clarity on the relevant date for refund computations in such cases.