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TMI Blog2015 (2) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... refund of interest on interest being creation of the statute. - Decided against assessee. - E/Misc./28994/2013 in E/1421/2012-SM, E/1421/2012-SM - Final Order No. 20124 / 2015 - Dated:- 22-1-2015 - Shri B. S. V. Murthy,JJ. For the Appellant : Mr. V. G. Ranganathan, Advocate For the Respondent : Dr. A. K. Nigam, Addl. Commissioner (AR) ORDER Per : B.S.V. Murthy During the period from 3.7.2001 to 31.3.2002, the appellant who is a manufacture of aluminium extrusion and parts of electric meters had availed CENVAT credit of ₹ 14,53,805/- on the materials rejected by the customers and returned to the factory for refining, reprocessing, etc. In fact, the event happened when the appellant s factory was owned by the Indian Aluminium Company Ltd., which was subsequently taken over by the present appellant. A view was taken by the Revenue that the conditions laid down under Rule 16 of Central Excise Rules have not been fulfilled and as a result, the demand for duty of ₹ 13,93,690/- being the credit involved was confirmed with interest. The matter travelled to the Tribunal and the Tribunal had directed the appellant to deposit 50% of the amount as pre-de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be said that appellant is eligible to interest on interest. 4. Learned counsel also relied upon several decisions to support his submissions that interest on interest is payable. 5. I have considered the submissions made by both sides. First of all, I find that several decisions relied upon by the counsel in the Misc. Application No.28994/2013 are not applicable to the facts of this case. (i) In Binjrajka Steel Tubes: 2008 (12) S.T.R. 788 (Tri.-Bang.), the Tribunal had taken a view that when the amount is collected without the authority of law, Department is liable to pay interest. In this case, the matter had already crossed two appellate levels and there was no stay granted by the Hon ble High Court and therefore it cannot be said that the amount collected was illegally collected. (ii) In the case of Sandvik Asia Ltd. [2006 (196) E.L.T. 257 (S.C.)] also, it was held that collection can only be in accordance with law and when such collection is made without authority of law, Revenue has to compensate the assessee. I find myself in agreement with the submissions made by the learned AR that in this case it cannot be said that the amount was collected without the aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the Fund : Provided that the amount of duty of excise and interest, if any, paid on such duty as determined by the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise]under the foregoing provisions of this sub-section shall, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to (a) rebate of duty of excise on excisable goods exported out of India or on excisable materials used in the manufacture of goods which are exported out of India; (b) unspent advance deposits lying in balance in the applicant s account current maintained with the Commissioner of Central Excise; (c) refund of credit of duty paid on excisable goods used as inputs in accordance with the rules made, or any notification issued, under this Act; (d) the duty of excise and interest, if any, paid on such duty paid by the manufacturer, if he had not passed on the incidence of such duty and interest, if any, paid on such duty to any other person; (e) the duty of excise and interest, if any, paid on such duty borne by the buyer, if he had not passed on the incidence of such duty and interest, if any, paid on such duty to any ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h goods, - (i) if the goods are exported by sea or air, the date on which the ship or the aircraft in which such goods are loaded, leaves India, or (ii) if the goods are exported by land, the date on which such goods pass the frontier, or (iii) if the goods are exported by post, the date of dispatch of goods by the Post Office concerned to a place outside India; (b) in the case of goods returned for being remade, refined, reconditioned, or subjected to any other similar process, in any factory, the date of entry into the factory for the purposes aforesaid; (c) in the case of goods to which banderols are required to be affixed if removed for home consumption but not so required when exported outside India, if returned to a factory after having been removed from such factory for export out of India, the date of entry into the factory; (d) in a case where a manufacturer is required to pay a sum, for a certain period, on the basis of the rate fixed by the Central Government by notification in the Official Gazette in full discharge of his liability for the duty leviable on his production of certain goods, if after the manufacturer has made the payment on the basis of s ..... 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