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TMI Blog2024 (7) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) Rs.47,74,000/- dated 26.02.2018 from Bank Account of the appellant (ICICI Bank Bhilwara) (ii) Rs.22,38,000/- dated 20.03.2018 from Bank Account of the appellant (ICICI Bank Bhilwara) (iii) Rs.23,12,122/- dated 27.03.2018 vide GST Refund Order No. 26/GST/Ref/BHL-E/2017-18 dated 27.03.2018 (iv) Rs.12,508/- vide GST Refund Order No. 23(R)18-19 CE (Refund) dated 27.08.2018. (Total amount recovered Rs.93,36,630/- as above) 1.1 The appellant filed a Writ Petition (C) No. 4678/2018 before the Hon'ble Rajasthan High Court, Jodhpur challenging the said Notice dated 26.02.2018 and for attaching their bank account. The aforesaid Writ Petition was decided by Hon'ble Rajasthan High Court vide said order dated 09.05.2018 in favour of appellant. Pursuant thereto the impugned refund claim dated 17.11.2020 was filed. However, it was proposed to be rejected vide Show Cause Notice No. 121 dated 17.02.2021 on the ground of it being time barred alleging that it should have been filed within one year from 09.05.2018, the date of order of Hon'ble Rajasthan High Court. 1.2 The said proposal was initially rejected vide Order-in-Original No. 01/2021-22 dated 09.04.2021. However, Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efund claim which has been sanctioned within three months of the filing of application and in the present case the filing date is the date of quantification order in terms of OIA No. 197(CRM) CE/JDR/2021/2726 dated 25.08.2021, hence, interest of refund sanctioned vide above said Order-in-Original is not payable to the appellant. 6. Department has relied upon a decision of the Year 2005. I observe that much water has flown since then on this issue and the issue is no more remains res integra. Section 11B/11BB of Central Excise Act are held as not applicable to the given set of circumstances. I draw my support from the decision of this Tribunal in the case of M/s. Parle Agro Pvt. Ltd. Vs. Commissioner, GST, reported as 2021-TIOL-306-CESTATALL, wherein following findings have been endorsed: "30. In the present case, the provisions of section 11B of the Excise Act would not be applicable. This is for the reason that the appellant was not claiming refund of duty. The applicant, as noticed above, had claimed refund of the revenue deposit. Such a finding has also been clearly recorded by the Tribunal in the order dated 31.01.2017, which order has attained finality. 31. Section 11D o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Another circular of department bearing No. 802/35/2004 CX dated 08.12.2004 was also being considered by the Apex Court in the above mentioned judgment dated 08.04 2015. In that circular the Board emphasised that the amounts other than the amount of duty if deposited it should be refunded immediately as nonreturning of deposits attract interest that has been granted by the Courts in number of cases. One similar case of Hon'ble Apex Court is the decision of Sandvik Asia Ltd. reported as 2006 (196) ELT 257 (SC) wherein it was held that the amount deposited under Section 35FF of Central Excise Act as far as the payment of interest is concerned shall be applicable only in the cases for such deposits as have been made under Section 35F of the Act. As already observed in the present case, the amount in question is neither the amount of duty nor is the amount of pre deposit, the amount in question is an amount of interest claimed on the amount sanctioned as Refund. The said amount had no authority to retain as the appellant was the owner thereof. 9. From the above discussion, once it is clear that Section 11B and 11BB of Central Excise Act will not be applicable to the amount in quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervention of this Court in Civil Appeal No. 1887 of 1992 dated 30.04.1997. Interest on delayed payment of refund was not paid to the appellant on 27.03.1981 and 30.04.1986 due to the erroneous view that had been taken by the officials of the respondents. Interest on refund was granted to the appellant after a substantial lapse of time and hence it should be entitled to compensation for this period of delay. The High Court has failed to appreciate that while charging interest from the assesses, the Department first adjusts the amount paid towards interest so that the principle amount of tax payable remain outstanding and they are entitled to charge interest till the entire outstanding is paid. But when it comes to granting of interest on refund of taxes, the refunds are first adjusted towards the taxes and then the balance towards interest. Hence as per the stand that the Department takes they are liable to pay interest only upto the date of refund of tax while they take the benefit of assesses funds by delaying the payment of interest on refunds without incurring any further liability to pay interest. This stand taken by the respondents is discriminatory in nature and thereby causi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate at which the such interest has to be awarded. From the several provisions of Central Excise Act, as quoted above, it is observed that the rate of interest has to be notified by the Central Government from time to time. I take note of following notifications: (i) The Notification No. 15/2016-CE dated 01.03.2016 issued under Section 11AA of Central Excise Act vide which the Central Government has fixed the rate of interest at 15% per annum for the purpose of said section. (ii) The Notification No. 67/2003-CE dated 12.09.2003 issued under Section 11BB vide which the Central Government has fixed the rate of interest at 6% per annum for the purpose of said section. (iii) The Notification No. 68/2003-CE dated 12.09.2003 issued under Section 11DD vide which the rate of interest fixed by the Central Government is at 15% per annum for the purpose of the said section. (iv) The Notification No. 6/2011 dated 01.03.0211 under Section 11AB wherein Central Government has fixed the rate of interest at 18% per annum for the purpose of the said section. From the above notifications, issued under the respective sections of the Act, it becomes clear that the rate of interest varies from ..... 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