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TMI Blog2015 (10) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... on of 3 months from the date of refund claim originally filed under Section 11BB of the Central Excise Act, 1944. There is no scope for postponement of payment of interest after completion of 3 months from the date of filing the refund claim. Appellant’s claim regarding interest from completion of 3 months from filing of first refund claim is allowed. Amounts paid at the time of investigation cannot be denied interest on the grounds that the amount paid was not duty and not entitled to interest. Similarly, in the case of CCE Kanpur Vs Kothari Products Ltd (supra) CESTAT Delhi held that interest has to be paid on delayed sanction of refund on account of penalty and interest when appropriated earlier. - Decided in favour of assessee. - Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 11,44,727.00 [Rs.6,93,475.00 (BED) ₹ 8252.00 (EC) ₹ 2,51,750.00 (Interest) and ₹ 1,91,250.00 (wrongfully appropriated)]. That entire refund of ₹ 12,44,727.00 was sanctioned under OIO No.Ref/Div.Wag/10/11-12, DT.06.02.2012 but without any interest for late sanction. 2.2 Learned Advocate relied upon the following case laws to argue that interest under Section 11BB of the Central Excise Act, 1944 is payable to the Appellant after 3 months from the date of receipt of the refund claim or after 3 months from the date of an order on a issue decided by the Appellate authority in favour of the assessee. i) CCE Hyderabad Vs I.T.C. Ltd [2005 (179) ELT 15 (SC)] ii) Bipin Silk Synthetics Vs CCE Mumbai-V [2007-TIOL-397 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen interest at prescribed rates become payable from the date of completion of 3 months till the same is paid. In the present case, a refund amount of ₹ 1,91,250.00 was appropriated with respect to some confirmed dues which was later on set aside. For this amount of ₹ 1,91,250.00 refund claim earlier filed was appropriated which was not held proper. In the present factual matrix, interest on the amount of ₹ 1,91,250.00 will become due from completion of 3 months from the date of refund claim originally filed under Section 11BB of the Central Excise Act, 1944. There is no scope for postponement of payment of interest after completion of 3 months from the date of filing the refund claim. Appellant s claim regarding interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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