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2019 (9) TMI 323 - AT - Central ExciseInterest on delayed refund - Refund claim of pre-deposit made - refund was sanctioned beyond 3 months of the application - time limitation - Section 35 F and 35FF of CEA - HELD THAT - Where any pre-deposit amount is paid in accordance of Section 35F, it is Section 35FF which is applicable with effect from 06.08.2014 by virtue of the amendment in Section 35F brought by the Finance Act (2) of 2014. No doubt the pre-deposit in the present case was made before the said amendment but the application praying for refund thereof is post amendment i.e. on 04.04.2017. The order of sanctioning the refund was passed on 31.07.2017. Hence, the amended provision shall squarely cover the present case of refund. The refund got sanctioned beyond three months - appellant is held entitled for the interest on the impugned refund amount at such rate as is mentioned in Section 35F - Appeal allowed - decided in favor of appellant.
Issues:
1. Refund claim under Section 35 F of Central Excise Act, 1944. 2. Timeliness of refund sanctioning. 3. Applicability of Section 35FF for interest on delayed refund. Analysis: Issue 1: The appellant filed a refund claim of ?10,00,000 under Section 35 F of the Central Excise Act, 1944 related to a demand confirmed in a previous order. The appeal was allowed by the Tribunal, and the refund was sanctioned by the Assistant Commissioner without interest, leading to the filing of the impugned appeal invoking Section 35 FF of CEA, 1944. Issue 2: The Departmental Representative justified the order, emphasizing that the refund was finalized within three months of the application, as mentioned in para 7 of the order. However, it was observed that the refund was sanctioned beyond three months of the application, contrary to the provisions of Section 35 F and 35FF, leading to the appellant being entitled to interest on the refund amount. Issue 3: The judgment highlighted the applicability of Section 35FF for interest on delayed refund, noting that even though the pre-deposit was made before the amendment, the refund application was post-amendment, making the amended provision applicable. As the refund was sanctioned beyond three months, the appellant was held entitled to interest on the refund amount as per Section 35FF, resulting in the order under challenge being set aside and the appeal being allowed.
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