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TMI Blog2016 (7) TMI 1068X X X X Extracts X X X X X X X X Extracts X X X X ..... f interest before the Commissioner (Appeals). The Commissioner (Appeals) directed to grant the interest on refund in respect of delay. The Assistant Commissioner following the order of Commissioner (Appeals) allowed the interest @ 6% in terms of Notification No. 67/03-CE dated 12.9.2003 issued under Section 11BB. Aggrieved by the said order, the appellant challenged the matter before Commissioner (Appeals) seeking interest @ 12%. The said appeal was rejected by the Commissioner (Appeals) and aggrieved by the said order, the appellants are in appeal before Tribunal. A short issue involved in this case is if interest on refund of pre-deposit made under Section 35F would be granted @ 6% as prescribed under the Notification No. 67/03-CE(NT) dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the material time while the rate of interest for refund under Section 11B was prescribed, no provision for grant of interest existed at the material time in respect of refund of pre-deposit. I find that Hon'ble Supreme Court in the case of ITC Ltd. (supra), in view of the proposed Circular of CBE&C had granted the interest @ 12%. It was a relief specific to that case and cannot be considered as a law laid down for the general implementation. Similarly, in the case of Madura Coats (supra), Hon'ble High Court of Kolkata had followed the decision of ITC Ltd. and observed as under: - "20. Therefore, in view of the fact that the period for which the petitioner is entitled to interest on the pre-deposit of the delayed refund was the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise Act. As regard the 12% interest granted by the Hon'ble Supreme Court, in my view it is under inherent power of the Hon'ble Supreme Court which cannot be made precedence and cannot be applied in each and every case. Regarding the Circular dated 18/12/2004 the Board has directed to field formation to grant refund of pre-deposit within the three months from the date of order. However, the Board has not prescribed any rate of interest which obviously board cannot prescribe the rate which is otherwise provided under Section 11BB and notification issued thereunder. I therefore find impugned order passed by the Ld. Commissioner (Appeals) is proper and legal which does not require any interference hence the same is upheld. However since ..... X X X X Extracts X X X X X X X X Extracts X X X X
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