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TMI Blog2025 (2) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... excise duty and for compliance with Central Excise statute, they are registered with jurisdictional Central Excise authorities and are holding a Central Excise Registration No. AAACA3780AXM001. 2.3 The appellant had inadvertently removed 500 Kgs. of 'Coumarin' declaring it as 'Sodium Sulphate' without payment of appropriate duty from their factory, which was detected by the officers of Central Excise (Preventive) and the said goods were seized on 24.01.2004. During the course of investigation, the appellant had paid a sum of Rs.20 lakhs vide three challans being No. 08/2003-2004 dated 03.03.2004 for Rs.10 lakhs, challan No. 09/30-04 dated 18.03.2004 for Rs. 5 lakhs and challan No. 11/2003-04 dated 19.03.2004 for Rs.5 lakhs. Upon investigation of the case, five show-cause notices were issued covering the period 1999-2004 to March, 2007. The dispute relating to this case, after adjudication at the original stage and at the first appellate stage, came before the Tribunal in various appeals. The issue attained finality in the Final Order No. A/91672- 91681/2017 dated 29.12.2017 passed by this Tribunal. In the said order, the Tribunal had confirmed the duty liability, interest on irreg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he date of deposit till the date of payment. Accordingly, learned Advocate prayed that their appeal also be entertained on the same basis and relief of payment of interest be granted. 5.2 On the other hand, learned AR appearing for Revenue stated that erstwhile Section 35FF ibid mandates payment of interest only if there is a delay in sanction of refund beyond three months from the date of communication of such order, and inasmuch as the amended provision of Section 35FF ibid is brought into effect from 06.08.2014, the same is not applicable in this case and stated that the appeal filed by the appellant is liable to be dismissed. 6. I find that the basic issue of removal of excisable goods i.e. Coumarin (manufactured out of imported Benzopyrone etc.) removed in the guise of base Sodium Sulphate/Organic Acid, was examined by the Tribunal initially at the time of admitting the appeal on 20.09.2007. On the basis of the amount of Rs.20 lakhs already deposited by the applicant and appropriated by the Commissioner in the adjudication order, the Tribunal had granted the stay vide Order No. S/699 to 704/2007/C-I/EB dated 20.09.2017. Subsequently, the Tribunal has disposed of the various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imed 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. xxx xxx xxx 32. xxx xxx xxx 33. There is no provision in the Excise Act, which deals with refund of revenue deposit and so rate of interest has not been prescribed, when revenue deposit is required to be refunded. 34. To be able to have some guidance regarding the rate of interest in case revenue deposit has to be refunded, the aid of the interest provisions under section 11AA (which deals with interest on delayed payment of duty), section 11BB (which deals with interest on delayed refunds under section 11B(2) and section 11DD (which deals with interest on the amount collected in excess of the duty) can be taken. 35. The Notification issued under section 11AA of the Excise Act provides interest at the rate of fifteen per annum. The notification is reproduced below: "Notification No. 15/2016-C.E. (N.T.), dated 1-3-2016 Notification Under Section 11AA Rate of interest on delayed payment of duty (w.e.f. 1-4- 2016). - In exercise of the powers conferred by section 11AA of the Central Excise Act, 1944 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 66/2003-Central Excise (N.T.), dated the 12th September, 2003 [GSR (E), dated the 12th September, 2003], except as respects things done or omitted to be done before such supersession, the Central Government hereby fixes the rate of interest at eighteen percent per annum for the purpose of the said section. This notification shall come into force from the 1st day of April, 2011." 39. In this connection reference can also made to the decisions of the Allahabad High Court in Pace Marketing Specialities and Ebiz. Com Private Limited, wherein after making reference to the decision of the Supreme Court in Sandvik Asia Ltd., the High Court granted interest at the rate of 12% per annum in matters relating to refund of amount deposited during investigation and adjudication. 40. In Riba Textiles, the Tribunal also granted interest at the rate of 12% on refund of amount deposited during investigation and at the time of entertaining the stay application. 41. In view for the aforesaid decisions, and the fact that the rate of interest varies from 6% to 18% in the afor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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