9911796707
TMI Blog2009 (12) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... Ministry of Finance, Gov. of India disallowing thereby the claim of the petitioner regarding interest on delayed payment of rebate claims in terms of Section 11BB of Central Excise Act, 1944. 2. The factual matrix of this case leading to the present appeal started when the Ld. Jt. Secretary, Ministry of Finance, Gov. of India disallowed the appeal of the respondents therein and upholding thereby the order of the Ld. Commissioner (Appeals-II), Central Excise, Indore in favour of the petitioner herein regarding certain rebate claims amounting to ₹ 4, 84, 52, 227 /- made by the petitioner during the period April & May 2003, which, initially, had been denied by the Assistant Commissioner of Central Excise, Ujjain. 3. Thereafter, its cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er dated 30.07.09 allowed the application of the Department and set aside the order dated 16.03.06 of Ld. Commissioner (Appeals-I). 6. It is clear from the above that the question is as to whether the petitioner is entitled to claim interest on delayed payment of rebate claims. To put differently, under the said provision, for which period the interest is allowed, whether the period for which the interest is leviable would be from the date the amount was paid till its refund or from the date of application for interest on refund is made. 7. Learned counsel for the petitioner submits that since the interest if compensatory in nature, it has to be allowed from the date when the amount was paid by the petitioner to the Government as this amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from such date, there shall be paid to the applicant interest under this section from the date immediately after three months from such date, till the date of refund of such duty. Explanation. - Where any order of refund is made by the Commissioner (Appeals), Appellate Tribunal (National Tax Tribunal) or any court against an order of the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, under sub-section (2) of section 11B, the order passed by the Commissioner (Appeals), Appellate Tribunal or, as the case may be, by the court shall be deemed to be an order passed under the said sub-section (2) for the purposes of this section. 8. This provision states that interest is to be paid from the date immediately ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction of Section 244(1-A) the assessee was not entitled to get any interest from the date of payment of tax up to the date of the order as a result of which excess realisation of tax became refundable. Interest under Section 243 or Section 244 was payable only when the refund was not made within the stipulated period up to the date of refund. But, if the assessment order was reduced in appeal, no interest was payable from the date of payment of tax pursuant to the assessment order to the date of the appellate order. 59. Therefore, interpretation of Section 214 or any other section of the Act should not be made on the assumption that interest has to be paid whenever an amount which has been retained by the tax authority in exercise of st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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