2012 (2) TMI 443 - HC - Central Excise

Rate of interest - Whether the Tribunal erred in reducing the rate of interest on return of pre-deposit to 6% per annum with effect from 20th October 2005 in terms of Section 35FF of Central Excise Act, 1944 read with Section 11BB of Central Excise Act, 1944 - Held that - modification of rate of interest under Central Excise Act, 1944 came into force only on 10-5-2008 and hence cannot be made applicable to instant case inasmuch as remand order of Tribunal was passed on 19-7-2005 and was received by Commissioner on 30-8-2005. Hence, rate of interest notified by Central Govt. under Section 11BB ibid @ 6% p/a vide Notification No. 67/2003-C.E. (N.T) applicable - Decided in favour of assessee.

Summary

The High Court Bombay High Court in 2012 (2) TMI 443 case addressed substantial questions of law regarding the Tribunal's decision to entertain a rectification application and reduce the rate of interest on return of pre-deposit to 6% per annum. The Appellate Tribunal's decision was based on the timing of the modification of interest rates under the Central Excise Act, 1944.