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2017 (12) TMI 701 - AT - Central ExciseInterest on delayed refund - whether the appellant is entitled to claim interest from the date of deposit to till its realization or not? - Held that - The said issue has examined by the Hon ble Madras High Court in the case of Ucal Fuel Systems Ltd. 2011 (9) TMI 903 - Madras High Court Wherein the Hon ble High Court has held that Limitation contained in Section 11B of the Central Excise Act is not applicable to the case of the first respondent since the amount in question was not paid towards excise duty but only by way of deposit during investigation, interest is allowable. The decision taken by the higher forum and decision taken by the Ld. Commissioner (A) himself in identical facts, unless until the same has been set-aside by the higher forum, he is bound to follow the judicial discipline, otherwise the public shall not have faith in such decisions taken by the appellate forum. The Ld. Commissioner (A) was bound to follow the judicial discipline on the subject. Appeal allowed - decided in favor of appellant.
Issues:
Entitlement to interest on delayed refund. Analysis: The appellant appealed against the rejection of interest on delayed refund. An investigation led to the appellant paying a sum on various dates. The Tribunal held the amount was not payable by the appellant, leading to a refund claim. The appellant sought interest based on precedents. The Revenue defended the impugned order. The key issue was the appellant's entitlement to interest on the refunded amount. The Madras High Court's judgment in a similar case was cited, emphasizing interest from deposit to realization. The Commissioner's differing views and failure to follow judicial discipline were highlighted. The Tribunal set aside the impugned order, ruling in favor of the appellant's entitlement to interest from the deposit date till realization. In conclusion, the Tribunal allowed the appeal, emphasizing the appellant's entitlement to interest on the refunded amount. The judgment underscored the importance of following judicial discipline and respecting precedents in such matters.
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