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TMI Blog2019 (1) TMI 1724X X X X Extracts X X X X X X X X Extracts X X X X ..... matter if they were denied refund initially and succeed at some appellate stage. The relevant date will still be the date of application for applications made post 1995. For applications made before, it becomes payable from 26-8-1995 as per the proviso to Section 11BB. The Learned first appellate authority has clearly erred in violating the statutory provisions and sanctioning refund from the date he considered fair - The appellant is entitled to interest on refund from 26-8-1995 till the date of payment of refund. Appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal was dismissed. Further, appeal to the Supreme Court by the department is in C.A. No. 1351 of 2005 [2015 (319) E.L.T. 547 (S.C.)] which was admitted but no stay was granted. Hence, the Asst. Commissioner granted refund of ₹ 46,67,329/- and ordered the balance of ₹ 92,472/- to be credited to CENVAT account of the appellant. The appellant thereafter claimed interest on this amount for the period 26-8-1995 to 17-7-2006 vide their letter dated 31-8-2007 which was rejected by the Asst. Commissioner vide Order No. C. No. V/48/18-3-2002 - Refunds dated 13-11-2007. On an appeal, the first appellate authority remanded the matter to the Asst. Commissioner who, again rejected the interest on the ground that department's appeal i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , till the date of refund of such duty." 4. He submits that their application was made prior to the introduction of Section 11BB and therefore, in terms of the proviso to Section 11BB, the interest gets payable after 3 months of the date on which the Finance Bill 1995 was assented by the President of India, i.e., 3 months after 26-5-1995. Therefore, the refund is payable from 26-8-1995 onwards. 5. Learned departmental representative reiterates the findings of the impugned order. 6. We have carefully examined the records of the case and the submissions on both sides. The short point to be decided is whether the appellant is entitled to interest on refund from 26-8-1995 (i.e., three months after the Finance Bill, 1995 was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of section 11BB read with Board's Circular relied in their appeal memorandum. 6. The fact that an appeal has been filed before the Apex Court, in my view, will not debar them from claim of interest once the original claim of refund has been sanctioned and paid. Therefore, I dispose of the appeal with a direction to the jurisdictional Assistant Commissioner to consider their claim for interest, with reference to the date of CESTAT's order, dated 27-9-2002. Their claim for earlier period is rejected." 7. Clearly, the above findings of the first appellate authority are a clear violation of the proviso to Section 11BB which requires the interest to be paid from 26-8-1995. Interest is payable with reference to the date of applica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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