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TMI Blog2017 (7) TMI 1157X X X X Extracts X X X X X X X X Extracts X X X X ..... AD] in which Pan Masala Packing Machines (Capacity determination and collection of Duty) Rules, 2008 were in issue and there also the appellant therein claimed interest for delayed refund. Held that:- There is no change in the 2008 Rules and 2010 Rules so far as the issue in the present matter is concerned - In this matter, there is delay in refund of duty from 21.3.2012 to 19.10.2016 and there is no dispute that the appellant had claimed interest on delay refunds after three months from 21.12.2011 i.e. from 21.3.2012 under Section 11 BB of the Act and the same has been recorded in the adjudicating order also and the same has only been denied on the ground that this Tribunal has not directed for payment of interest on delay refund and also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appeal filed by the appellant and held that the abatement claim of the Appellant is required to be given for the period from 10.11.2011 to 26.11.2011 and that the same would be re-quantified by the Adjudicating authority and be allowed to the appellant. 3. In view of the order of this Tribunal, the Appellant on 11.8.2016 filed application before the department for refund of the amount of 17 days (i.e. from 10.11.2011 to 26.11.2011) with interest. The Adjudicating authority vide Order-in-Original dated 19.10.2016 although allowed abatement of duty amounting to ₹ 8,07,500/- for 17 days (from 10.11.2011 to 26.11.2011) under Rule 10 of 2010 Rules, but rejected the appellant's claim for interest on the ground that there is no provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elating to maintenance of daily stock account, removal of goods on invoice, filing of returns and recovery of dues shall apply mutatis mutandis" Section 11 BB of the Central Excise Act which provides for interest on delayed refunds is also extracted 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 Central Government, by Notification in the Official Gazette, on such duty f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act lays down that in case any duty paid is found refundable and if the duty is not refunded within a period of three months from the date of receipt of the application to be submitted under sub-section (1) of Section 11B of the Act, then the applicant shall be paid interest at such rate, as may be fixed by the Central Government, on expiry of a period of three months from the date of receipt of the application. The Explanation appearing below Proviso to Section 11BB introduces a deeming fiction that where the order for refund of duty is not made by the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise but by an Appellate Authority or the Court, then for the purpose of this Section the order made by such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of refund claim and till the date of sanctioning refund in terms of the law laid down by the Hon'ble Supreme Court in the matter of Ranbaxy Laboratories Ltd.(supra). The relevant paragraphs of the decision of this Tribunal in M/s. Prem Products matter (supra) is extracted as under:- "4. Considering the fact that as per the Pan Masala Packing Machines (Capacity determination and collection of Duty) Rules, 2008, the assessee required to pay duty on 5th day of the month in advance which appellant did not pay in time, therefore, the same was paid alongwith interest. Later on, the abatement claims were filed for that month and abatement claim was held to be correct. In that circumstances, the claim of the appellant for interest for the abated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is delay in refund of duty from 21.3.2012 to 19.10.2016 and there is no dispute that the appellant had claimed interest on delay refunds after three months from 21.12.2011 i.e. from 21.3.2012 under Section 11 BB of the Act and the same has been recorded in the adjudicating order also and the same has only been denied on the ground that this Tribunal has not directed for payment of interest on delay refund and also that there is no provision for grant of interest under Rule 10 of 2010 Rules. Merely because the interest on refund is not directed doesn't mean that it has been refused or rejected. Therefore in view of the discussions made hereinabove and also in view of the decision of the Hon'ble Supreme Court in Ranbaxy case (supra) and o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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