2009 (1) TMI 720 - AT - Central Excise

Refund of Interest - Maintainability of claim - Held that - the claim for refund of interest stands rejected not on the ground that interest is not required to be refunded but on the ground that claim for refund of interest does not lie under the Central Excise Act and the Rule and the claim can be in the Civil Court - appeal dismissed.

Summary

Issues:
Whether refund of interest is permissible under the Central Excise Act and Rules.

Analysis:
The judgment by the Appellate Tribunal CESTAT, New Delhi, involved the issue of whether refund of interest is allowed under the Central Excise Act and Rules. The Tribunal referred to a previous decision in the assessee's own case, where it was held that there is no provision for refund of interest as interest paid is not considered a duty of excise. The appellant argued that the doctrine of unjust enrichment should apply, citing a Supreme Court case, but the Tribunal found this argument untenable. The Tribunal emphasized that the rejection of the claim for refund of interest was not based on the premise that interest should not be refunded, but rather on the grounds that such a claim falls outside the purview of the Central Excise Act and Rules, necessitating recourse to a Civil Court for such claims.

In light of the above analysis and in line with the previous decision in the assessee's case, the Tribunal upheld the impugned order and dismissed the appeals. The judgment was dictated and pronounced in open court on 2-1-2009.