9911796707
TMI Blog2024 (12) TMI 1134X X X X Extracts X X X X X X X X Extracts X X X X ..... efund-20/Dn.III/2011- 12 dated 19.9.2011. 2. The issue to be decided herein is whether the appellant is liable to pay interest under Section 11AA of the Central Excise Act, 1994 when neither the show cause notice nor the adjudication order therein propose levy of interest? 3. The appellant is engaged in manufacturing sugar confectionery in their factory. A case of clubbing of the clearances was booked on the appellant and it was proposed that clearance of other independent unit viz. M/s. Harnik Nutrients Pvt. Ltd. were to be clubbed with the appellant. Accordingly show cause notice dated 8.4.1994 was issued to the appellant for the period January, 1991 to October, 1993 and demand was confirmed by the Order-in-Original dated 24.1.1996 wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 8.4.1994 in which the Order-in-Original dated 24.1.1996 was passed. 5. The refund application, in issue herein, of the appellant was decided by the adjudicating authority vide Order-in-Original dated 19.9.2011 by which the said authority although sanctioned refund amount of Rs.15,56,000/- to the appellant but appropriated and deducted the amount of Rs.65,000/- towards penalties and Rs. 9,41,315/- towards interest of the Order-in- Original dated 24.1.1996 being outstanding recoverable government dues. The cheque of balance amount of Rs.5,49,685/- was issued to the appellant by the said authority. Since the appellant themselves consented for the deduction of the penalty from the refund amount therefore there is no dispute on that. But ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vernment, by notification in the Official Gazette, on such duty from the date immediately after the expiry of the said period of three months till date of payment of such duty." 7. The language of the aforesaid provision is very clear and unambiguous. But the issue herein is when during the relevant time there was no provision in the statute about charging of interest and when there is no proposal in the show cause notice or in the Order-in-Original confirming the demand, can the department deduct and adjust the same from the amount to be refunded? The reply of which, in my view, is in negative. The recovery of any sum without there being any proposal in the show cause notice or adjudication order therein, is totally illegal and unsustaina ..... X X X X Extracts X X X X X X X X Extracts X X X X
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