9911796707
TMI Blog2014 (11) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of clause (c) of the proviso to sub-section (2) of Section 11B and consequently Section 11BB of the Act are clearly applicable to the facts of the present case and as such the respondent is entitled to interest on delayed refund of Cenvat Credit as claimed by it. Another aspect of the matter is that when Section 11BB of the Act had newly been inserted by the Finance Act, 1995, the Government of India, Ministry of Finance (Department of Revenue) has issued Circular : 130/41/95-CX., dated 30th May, 1995 (which finds reference in the impugned order of the Tribunal) issuing instructions regarding refunds claimed under Section 11BB of the Act. The Annexure thereto provides for the checklist of documents which are required to be filed w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st from OIA No. 498 To 502/2010/ COMMR(A)/CMC/RAJ dtd 14.12.2010 hence are being disposed of by a common order. 2. Aggrieved by the rejection of refund claims of interest, appellants preferred appeal before the First Appellate Authority. The First Appellate Authority after following the due process of law did not agree with the contentions raised by the appellant and rejected the appellants claims for interest on the belated refunds. 3. Ld Counsel appear on behalf of the appellant would draw our attention to the findings recorded by the lower authorities. It is the submission that the refund claims are allowed sanctioned but belatedly. It is the claim of the Ld Counsel that the Dept is liable to pay interest of the appellants on his b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for such payment of interest. 5. Ld DR on the other hand would submit that the provisions of Notification No. 9/2009-ST as amended by Notification No. 15/2009-ST do not provide any payment of interest to the appellant. It is his submission that both the lower authorities were correct in coming to the conclusion that the refund claims filed under notification 15/2009 do not fall under the category of refund claims under Section 11B of the Central Excise Act 1944 and provisions of Section 11BB of Central Excise Act 1944 are not attracted. 6. We have considered the submission made at length by both sides and records. The only issue which needs our consideration is whether the appellant is eligible for interest on the refunds sanctioned b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice provider. - Secondly, we find that the First Appellate Authority has held that the appellants claim is contrary to the spirit of the Board circulars is findings contrary to the spirit of both the circulars dtd 20th May, 2009 wherein the Board has categorically directed the formulation that the refund claim of the service tax paid on services rendered to SEZ units should be sanctioned within the maximum time of 30 days from the date of filing of refund claim and in any case beyond 45 days from the date of filing of the refund claim. Clear instructions of the board are not followed in the case in hand which is very evident from the delay which has occurred in sanctioning refund claim as indicted in Para 2 herein above. In o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods manufactured by the supplier or dutiable services rendered by the service provider. In principle such goods/services when utilised for further manufacture or providing service which are dutiable already carry the duty paid component as a part of its price/value, and hence the duty payable on the ultimately manufactured goods/services rendered stands reduced to the extent of duty already paid on the inputs. Thus the duty paid on inputs by the supplier has already been actually received by the exchequer. Therefore, this contention is, to say the least, misconceived. On the facts and in the circumstances of the present case, admittedly the refund has been ordered under Rule 5 of the Rules and there was a delay in sanctioning the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not possible to adjust the same in the manner provided under the said sub-rule. Sub-rule (13) of Rule 57F of the said Rules is more or less in pari materia to the provisions of Rule 5 of the Cenvat Credit Rules, 2002/2004. Thus, the instructions issued by the Central Government under the aforesaid Circular would also be applicable to refunds under rule 5 of the Rules, which instructions are binding on the revenue. 7. In view of the foregoing, we are of the considered view that the impugned orders rejecting the claim of interest of the appellant are incorrect and not in consonance with the law as settled various judicial fora. Accordingly, we set aside the impugned orders and allow the appeals with consequential relief if any. (Pronoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
