2006 (5) TMI 505 - AT - Central Excise

Summary

Issues:
1. Calculation of interest on refund consequent to finalization of provisional assessment.

Analysis:
The issue in this case revolves around the calculation of interest on a refund sanctioned after the finalization of provisional assessment. The appellant contended that interest should commence only after finalization and not from a date prior to it. This contention was supported by a Tribunal ruling in a similar case. The Tribunal, in a previous final order, had held that interest would start from the date of finalization under Rule 7(4) of the Central Excise Rules. The rule specifies that interest is payable after one month from the date when the amount is determined. In this case, the differential duty was determined on a specific date, and the entire amount was paid within the stipulated time frame. Therefore, the Tribunal concluded that there was no basis for confirming interest against the appellant or imposing any penalty. The appeal was allowed in favor of the appellant based on the interpretation of the relevant rule and previous Tribunal rulings.

Another aspect highlighted in the judgment was regarding the impugned order passed by the Commissioner (Appeals) pertaining to two different appeals. The Tribunal clarified that the present order specifically related to the appeal concerning the facts discussed earlier. The Tribunal followed the precedent set by the previous judgment and upheld the appellant's contention, ultimately allowing the appeal with any consequential relief that may arise.

In conclusion, the Tribunal set aside the impugned order and granted the stay application and appeal in favor of the appellant based on the interpretation of the relevant rule and the consistent application of previous Tribunal rulings.