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TMI Blog2009 (10) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be paid interest from the date following three months from 27-2-2007 on the amounts of Rs.2,25,598/- and Rs.32,436/- to 21-7-2007 and 13-6-2008 respectively. – decided in favor of assessee. - E/623 and 1245/2008 - A/584-585/2009-WZB/C-IV/SMB - Dated:- 15-10-2009 - Shri P.G. Chacko, Member (J) Ms. Debarati Nag, Advocate, for the Appellant. Shri Manish Mohan, SDR, for the Respondent. [Order].- The issue arising in this case pertains to interest on interest. 2. The department recovered duty by encashing bank guarantees totally valued at Rs.64 lakhs furnished by the appellant, towards a demand of duty of Rs.63,57,103/-. The surplus amount of Rs.42,897/- was appropriated towards a demand of interest under Section 11AA of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icable to a demand of duty arising out of finalisation of provisional assessment. 4. The Appellate Commissioner's order dated 27-2-2007 was not challenged by the department. On the strength of this order, the assessee filed a claim on 20-4-2007 for refund of Rs.2,58,044/- paid as interest. The Assistant Commissioner vide Order-in-Original No. 2/2007 dated 20-6-2007 granted refund of Rs.2,25,598/- after deducting Rs.32,446/- which was claimed to be due from the assessee as interest on wrongly availed CENVAT credit. Against the Assistant Commissioner's action of appropriating Rs.32,446/- from the refund claimed by them, the assessee preferred an appeal to the Commissioner (Appeals) and the latter allowed the same vide Order-in-Appeal dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant Commissioner's order declining to sanction interest on the amount of Rs.2,58,044/-, the assessee filed an appeal with the Commissioner (Appeals) contending that the lower authority ought to have sanctioned such interest with reference to Order-in-Appeal dated 29-10-1997. The learned Commissioner (Appeals) rejected this appeal after observing that Order-in-Appeal dated 29-10-1997 was only a remand order which did not finally decide the issue and, therefore, the appellant's claim for interest on the strength of the said Order-in-Appeal was not liable to be accepted. Appeal No. E/1245/2008 is against this decision of the Commissioner (Appeals) (Order-in-Appeal dated 30-9-2008). 6. Heard both sides. The learned counsel for the appellant r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest under the Central Excise Act or any rules framed thereunder. In any case, the appellant's prayer for payment of interest on the basis of Order-in-Appeal dated 29-10-1997 was not liable to be granted inasmuch as the said order was only a remand order, which did not finally decide on the question of payment of interest. The learned SDR also opposed the plea for interest @ 18% made in one of the appeals. 8. I have carefully considered the facts of the case. The refund application was filed on 20-4-2007 for Rs.2,58,044/- paid as interest. Out of this amount, a sum of Rs.2,25,598/- was refunded on 21-7-2007 and the balance amount of Rs.32,446/- on 13-6-2008. The prayer in one of the appeals is for payment of interest on these amounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation or after three months from the date of order of the appellate authority whichever is earlier." 9. The refund application was filed on 20-4-2007. The appellate authority's order referred to in Order-in-Appeal dated 24-3-2008 was passed on 27-2-2007. Therefore, it appears, as per the impugned order, the appellant is entitled to interest on Rs.2,58,044/- from the date immediately following three months from 27-2-2007 to the date of refund of the said amount. The appellant claims interest from the date immediately following three months from 29-10-1997 (date of remand order) to the date of refund. This claim cannot be granted inasmuch as the remand order passed by the Commissioner (Appeals) had not given rise to any cause of action for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ately following three months from the date of the Appellate Commissioner's order to the date of refund of duty. If this principle is applied to the appellant's claim of interest, it could be held that they should be paid interest from the date following three months from 27-2-2007 on the amounts of Rs.2,25,598/- and Rs.32,436/- to 21-7-2007 and 13-6-2008 respectively. The learned Appellate Commissioner's order dated 24-3-2008 yields these results and hence the same has to be sustained. 10 For the reasons already recorded, the view taken by the Commissioner (Appeals) in order dated 30-9-2008 has also to be upheld. 11. In the result, both the appeals are dismissed. (Pronounced in Court on 15-10-2009) - - TaxTMI - TMITax - Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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