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TMI Blog2018 (6) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... s not payable from the date of deposit, but it is payable only after three months of filing the application - As per provision of Section 11B(5)(B)(ec), the refund becomes matured only as a consequence of the Appellate Tribunal’s order. When the refund itself is not matured prior to the date of Appellate Tribunal’s order, there is no question of interest for the period prior to the date of order. The Apex Court decision in the case of ONGC Ltd. vs. CC [2007 (8) TMI 346 - SUPREME COURT OF INDIA] are factually different and do not apply to the present case. The Hon’ble Supreme Court, under the inherent power of the apex court on the principle of restitution, granted the interest from the date of deposit. However, the statutory provision u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeals). The said appeal filed before the Commissioner (Appeals) was rejected and the order-in-original dated 29.7.2016 was upheld. Therefore, the appellant is before me. 2. Shri Vinay Jain, learned Chartered Accountant appearing on behalf of the appellant, submits that the appellant is entitled for the interest right from the date of deposit of the amount as the Tribunal held that the amount was not payable. He relied upon the following judgments:- (i) ONGC Ltd. vs. CC 2007 (215) ELT 166 (SC); (ii) Futura Ceramics Pvt. Ltd. vs. CCE ST 2017 (12) TMI 701; (iii) RHL Profiled Ltd. vs. CST 2017 (352) ELT 349 (All.). He submits that in view of the above judgments, the appellant is entitled for the interest from the da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant filed a refund claim for the deposit so made. The refund was sanctioned within three months from the date of filing the application. The refund was admittedly sanction under Section 11B. For the purpose of refund under Section 11B, the provision for interest is provided under Section 11BB which reads as under:- 11BB. Interest on delayed refunds. - If any duty ordered to be refunded under sub-section (2) of section 11B to any applicant is not refunded within three months from the date of receipt of application under sub-section (1) of that section, there shall be paid to that applicant interest at such rate, not below five per cent and not exceeding thirty per cent per annum as is for the time being fixed by the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest is not payable from the date of deposit, but it is payable only after three months of filing the application. As regards the judgments relied upon by the learned counsel, I have gone through the said judgments. In the case of ONGC (supra), I find that the Hon ble Supreme Court, under the inherent power of the apex court on the principle of restitution, granted the interest from the date of deposit. However, the statutory provision under the Customs Act i.e. Section 27 of the Customs Act, 1962 has not been considered. The entire case was decided on the principle of restitution. Therefore, I respectfully distinguish the apex court judgment, particularly for the reason that this Tribunal, being a creature under the statute, cannot exerci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of expiry of three months from the date of receipt of final order of the Tribunal till the date of payment. Therefore, the interest is not payable from the date of deposit. I have also read the provision of Section 11B(5)(B)(ec) which reads as under:- (ec) in case where the duty becomes refundable as a consequence of judgment, decree, order or direction of appellate authority, Appellate Tribunal or any court, the date of such judgment, decree, order or direction. The relevant date means in case where the duty becomes refundable as a consequence of judgment, decree, order or direction of appellate authority, Appellate Tribunal or any court, the date of such judgment, decree, order or direction. 5. As per the above provision, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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