9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 715 - AT - Central ExciseInterest on delayed refund - relevant date for calculation of interest - appellant is seeking interest from the date of deposit of duty whereas the Revenue is of the view that the appellant is entitled to interest after the expiry of three months from the date of application i.e. from 24.05.2018 when the appellant moved application for refund after the decision of the Tribunal - Section 11BB of CEA - Board Circular No. 670/61/2002-CX dated 01.10.2002 - HELD THAT - In view of the law laid down by the Ranbaxy Laboratories Ltd. 2011 (10) TMI 16 - SUPREME COURT which have been subsequently followed by various Benches of the Tribunal and the High Court, it can be held that the appellants are entitled to interest under Section 11BB of the Act commencing from the date of expiry of three months from the date of filing the refund application, which in the present case is 25.07.2006 which is admitted in the SCN itself. The appellant is entitled to interest after expiry of three months from 25.07.2006 till 21.12.2018 when the refund was sanctioned - Appeal disposed off.
Issues Involved:
1. Eligibility for interest on delayed refund. 2. Date from which interest on delayed refund is to be calculated. Issue-wise Detailed Analysis: 1. Eligibility for Interest on Delayed Refund: The appellant, a manufacturer of hot re-rolled steel products, was brought under the annual capacity of production scheme under Section 3A of the Central Excise Act. Various show cause notices (SCNs) were issued demanding differential duty, leading to adjudication levies and pre-deposits. The appellant's appeal to the Tribunal was allowed, and subsequent appeals by the Department to the High Court and Supreme Court were dismissed as non-maintainable and time-barred, respectively. The appellant filed a refund application on 25.07.2006, which was sanctioned but credited to the Consumer Welfare Fund due to unjust enrichment concerns. The Commissioner (Appeals) partially upheld the appellant's claim, and the Tribunal eventually ruled in favor of the appellant, holding that the refund was not barred by unjust enrichment. The Assistant Commissioner sanctioned the refund but did not grant interest for the delayed refund. The Commissioner (Appeals) confirmed the appellant's entitlement to interest but did not specify the date from which interest should be calculated. 2. Date from Which Interest on Delayed Refund is to be Calculated: The central issue was the date from which the interest should be calculated. The appellant argued for interest from the date of deposit of duty, while the Revenue contended it should be from three months after the refund application date. The Tribunal examined Section 11BB of the Central Excise Act, which mandates interest on refunds sanctioned beyond three months from the date of receipt of the refund application. The Tribunal referenced multiple judgments, including the Supreme Court's decision in Ranbaxy Laboratories Ltd. vs. Union of India, which clarified that interest is payable from three months after the refund application date, not from the date of the appellate order. The Tribunal noted that the appellant's original refund application was filed on 25.07.2006. Therefore, interest should be calculated from three months after this date. The Tribunal concluded that the appellant is entitled to interest from 25.10.2006 until 21.12.2018, when the refund was sanctioned. Conclusion: The Tribunal allowed the appeal, holding that the appellant is entitled to interest under Section 11BB of the Central Excise Act from three months after the date of the original refund application (25.07.2006) until the date the refund was sanctioned (21.12.2018). The decision emphasized the automatic applicability of Section 11BB for refunds sanctioned beyond three months, aligning with the Supreme Court's interpretation and various precedents cited. The appeal was disposed of accordingly.
|
