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2013 (2) TMI 249 - AT - Central ExciseInterest on Refund claim delayed - Held that - It is clear that the appellant would be entitled to interest for a period from the expiry of Three months from the date of application for refund till date of payment at the rate specified under Section 11BB as confirmed by view taken by I.T.C. Ltd. (2004 (12) TMI 90 - SUPREME COURT OF INDIA)- As appellant have been challenging the period for payment of interest and they have not challenged the rate of interest nor they have challenged the order wherein penalty was imposed in these circumstances no reason to interfere with the Commissioner (Appeals) order which is upheld and the appeal which is debarred of merit is dismissed.
Issues:
1. Grant of interest on delayed refund. 2. Applicability of Tribunal's Larger Bench decision. 3. Calculation of interest rate. 4. Consideration of penalty aspect. Issue 1: Grant of interest on delayed refund The appellant filed a refund claim for interest on an amount paid during an investigation. The Lower Adjudicating Authority granted interest from the expiry of three months from the date of the Tribunal's order. The appellant contended that interest should be granted from the date of deposit through PLA, citing precedents. The Tribunal found that interest on delayed refund is payable after three months from the final disposal of the dispute, as per the Tribunal's Larger Bench decision. The interest liability arose from a specific date, and the Tribunal allowed the appeal partly, modifying the original order accordingly. Issue 2: Applicability of Tribunal's Larger Bench decision The Tribunal referred to the decision in the case of Jayant Glass Industries (P) Ltd. vs. CCE, Kolkata, where it was held that if an appeal is decided in favor of the assessee, the amount should be refunded within three months of filing the refund claim. Interest becomes due after three months from the application date, as per the Tribunal's judgment. The Tribunal upheld the lower adjudicating authority's calculation of interest in accordance with relevant notifications. Issue 3: Calculation of interest rate The Tribunal noted that the rate of interest was rightly calculated by the lower adjudicating authority in line with the Notification issued under Section 11BB of the Central Excise Act, 1944. The interest rate was determined based on the provisions specified in the notification, ensuring compliance with the legal requirements for interest calculation on delayed refunds. Issue 4: Consideration of penalty aspect The appellant raised concerns about the penalty aspect not being considered during the case. However, the Tribunal found that the appellant did not challenge the rate of interest or the order imposing the penalty. As the appellant had been contesting the period for payment of interest without challenging other aspects, the Tribunal upheld the decision of the Ld. Commissioner (Appeals) and dismissed the appeal, finding no merit in interfering with the lower authority's order. This comprehensive analysis of the judgment highlights the key issues addressed by the Tribunal regarding the grant of interest on delayed refunds, the applicability of precedents, the calculation of interest rates, and the consideration of penalty aspects in the case.
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