9911796707
TMI Blog2007 (3) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... efore such appeal was allowed the Revenue authorities encashed the bank guarantee given by the appellant as soon as the Order-in-Original was passed. After getting the order-in-appeal in their favour, the appellant filed refund claim on 15-9-94. The said refund claim was processed and sanctioned by the original authority on 30-4-96 and cheque of refund amount was handed over to the appellant on 2-5-96. The appellant made an application for interest on such amount for the period 26-8-95 to 2-5-96 relying upon the provisions of Section 11BB of the Central Excise Act. The said refund claim was rejected by the lower authorities on the ground that the amount which has been encashed by the bank guarantee cannot be considered as an amount of duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of dues. A conservative view would indicate that encashment of bank guarantee would look like pre-deposit made by the appellant pending appeal filed by them before the appellate authority in order to satisfy the provisions of Section 35F of the Central Excise Act, 1944. If that be so the amount which has been collected by the Revenue authorities on encashment of bank guarantee had to be returned back to the appellant as soon as appeal filed by the appellant was allowed by the appellate authority and not challenged by the Revenue. If there is any delay in refund of the amount which has been taken as pre-deposit, the Revenue is liable to pay interest as provided under Section 11BB of the Central Excise Act, 1944. I find strong force in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r in favour of the appellant passed by the Commissioner (Appeals). The subsequent order of the Tribunal has only confirmed the order of the Commissioner. Therefore, that is the order which became final. A contrary view would be justifying the Commissioner. Therefore, that is the order which became final. A contrary view would be justifying the delaying of refunds and interest payment for delayed refund through a process of filing futile appeals to higher and higher authorities. We feel that such a view would not be correct and just. The circular of the Board clearly covers payments made in terms of Section 129E of the Customs Act and Section 35F of the Central Excise Act. Both these sections stipulate that an appellant has to deposit, befor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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