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TMI Blog2017 (12) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... e date of refund of the principal amount as per the rates in force at the relevant time - appeal dismissed - decided against Revenue. - E/3218/2009-EX[SM] - A/71642/2017-SM[BR] - Dated:- 5-5-2017 - Mr. Anil Choudhary, Member (Judicial) Shri Rajeev Ranjan, Joint Commissioner, (AR), for Appellant Shri Anurag Mishra, Advocate, for Respondent ORDER Per: Anil Choudhary The issue in this appeal by Revenue is, whether the ld. Commissioner (Appeals) have rightly directed payment of interest on the amount deposited during investigation, which was lying with the Department and thereafter no Show Cause Notice was issued. Subsequently, the respondent-assessee claimed refund, the said amount being in the nature of deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he date of the order passed by the Appellate Authority. In this case, the refund amount had been given to the respondent-assessee within a period of three months from the date of order passed by Commissioner (Appeals), therefore, the interest was not payable to them (respondent-assessee). Being aggrieved, the respondent-assessee filed another appeal before Commissioner (Appeals), Central Excise, Kanpur, who vide the impugned OIA No.194-CE/APPL/KNP/2009 dated 27/07/2009 ordered for refund of interest as decided by his earlier Order-in-Appeal dated 13/01/2009. The ld. Commissioner (Appeals) also distinguished the CBEC Circular dated 08/12/2004 relied upon by the Adjudicating Authority. It was further observed that it was not the case of pre-d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of three months from the date of receipt of Refund Application under Section 11BB of the Central Excise Act, 1944. Further, referring to the ruling of Hon ble Punjab Haryana High Court in the case of Geekay International Versus Union of India, 2008 (230) E.L.T. 590. It is urged that the Hon ble Punjab Haryana High Court, while ordering the return of the deposits have not awarded any interest. Accordingly, it is urged that the order of Commissioner (Appeals) is not proper, so far as relating to allow interest on the refunded amount from the date of deposit of amount till the date of refund, as refund paid to the party within three months from the date of order of the ld. Commissioner (Appeals). 4. Heard the ld. Counsel, Mr. Anu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it had also been collected much before the adjudication order, the amount can only be treated as deposit. This amount has been withheld by the department on account of the wrongful denial of the exemption notification. In all fairness, the appellant is entitled for interest on the amount, which has been withheld by the Department unlawfully from the date of deposit. Several case-laws relied on by the learned Advocate are applicable to the facts of the present case. Hence, we order payment of interest at appropriate rate to the appellant. The rate of interest will be the rate applicable to normal refunds, which are paid belatedly and the adjudicating authority should adopt the rates notified by the Government of India for delayed refunds. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ince the amount in question was not paid towards excise duty but only by way of deposit during investigation and accordingly upheld the directions of the ld. single judge to pay interest along with refund @ 6% per annum from the date of deposit till the date of refund. 6. Having considered the rival contentions and on perusal of the facts on record, I find that the issue is squarely covered by the ruling of this Tribunal in the case of Toyoto Kirloskar Auto Parts Pvt. Ltd. (supra) and the said order have been confirmed by the Apex Court as noticed herein above. Accordingly, I hold that there are no merits in the appeal of revenue and the same is dismissed. 7. Under the facts and circumstances, I direct the Adjudicating Authority t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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