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TMI Blog2024 (8) TMI 596X X X X Extracts X X X X X X X X Extracts X X X X ..... n the range @5% to 30% as per Section 11BB of Central Excise Act, 1944 can be given @ 12% per annum as claimed by the appellant, or as per the N/N.67/2003-CE (N.T.) issued under Section 11BB which restricts the rate of interest at 6% in case of delayed refund? HELD THAT:- The issue is no longer res integra and has been considered and settled by the two High Courts. In the case of C. PADMINI CHINNADURAI VERSUS ASSTT. COMMR. OF C. EX., TIRUNELVELI [ 2010 (7) TMI 356 - MADRAS HIGH COURT] , the Division Bench rejected the contention of the appellant that since it is pre-deposit and not central excise duty , therefore, the notification no.67/2023 would not apply, observing 'the respondent was directed to pay interest at the rate of 8% from 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BINU TAMTA, MEMBER (JUDICIAL) AND MR. P.V. SUBBA RAO, MEMBER (TECHNICAL) Shri Om P. Agarwal, Chartered Accountant for the appellant Shri Bhagwat Dayal, Authorised Representative for the respondent ORDER Two separate appeals have been filed by M/s.Dinesh Tobacco Industries Ltd. (Unit-I and Unit-II) [The Appellant] challenging the order-in-appeal no.1306-CRM-CE-JDR-2018 dated 29.11.2018 and order-in-appeal no.16(CRM)CE/JDR/2019 dated 02.01.2019, whereby the interest on the refund amount has been affirmed @6% instead of 12%, as claimed by the appellant. 2. Briefly stated the facts of the case are that the appellant is engaged in the manufacture of Pan Masala and Gutkha. The refund application was filed by the appellant on 26.12.2008 claiming ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered Accountant, learned counsel for the appellant and Shri Bhagwat Dayal, Authorised Representative for the respondent. 5. Learned counsel for the appellant relying on the decisions of the Supreme Court in the case of CCE Vs. I.T.C. Ltd. [2005 (179) ELT 15 (SC)] and of the Allahabad High Court in the case of M/s.Govind Mills Ltd. Vs. CCE, Allahabad [2014-TIOL 677 (HC) =2014(35)STR 444 (All.)] claimed the interest @12% for the delayed payment. The contention of the learned counsel for the appellant is that the amount in question was revenue deposit and not duty and, therefore, provisions of Section 11BB would not apply. He further argued that the show cause notices were issued for rejection of the refund of interest on merits and there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11BB of Central Excise Act, 1944 can be given @ 12% per annum as claimed by the appellant, or as per the Notification No.67/2003-CE (N.T.) issued under Section 11BB which restricts the rate of interest at 6% in case of delayed refund. 8. The issue is no longer res integra and has been considered and settled by the two High Courts. In the case of C. Padmini Chinnadurai (supra), the Division Bench rejected the contention of the appellant that since it is pre-deposit and not central excise duty , therefore, the notification no.67/2023 would not apply, observing as under:- 16 . Unless it has been established that Pre-Deposit is not with reference to the Central Excise Duty , but Pre-Deposit can be made in respect of other payment also, the arg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose of said section and holding that interest payable in terms of Section 11BB of the Act, which in turn is with reference to the notification referred above, the rate of interest was reduced from 9% to 6%. 10. Learned Single Member of this Tribunal in Devendra Udyog (supra) considered all the aforesaid decisions relied on by the appellant as well as by the Revenue and observed that:- 7 . In Section 11BB, to clarify the rate of interest in the range of 5% to 30%, the statute itself has empowered the Central Government to fix any rate of interest for the time being by way of a notification. This clarifies that once there is a notification of Central Government fixing 6% as the rate of interest same has to be followed as having power of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that the Apex Court had also relied on the draft Circular issued by the CBEC for payment of interest on all such pre-deposits, a draft copy of which was placed before the Court, which is evident from the order itself, as quoted below:- Having referred to the contents of the draft Circular, we direct compliance with the final order impugned before us and payment of interest in terms of the draft Circular. The draft Circular shall be appended to and the contents form part of this order. 13. Section 11BB specifies that interest shall be paid to the applicant at such rate not below 5% and not exceeding 30% p.a., which may be fixed by the Central Government by issuing the notification on such duty and, therefore, the notification no.67/2003 h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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