Appeal granted for interest on delayed refund amount.

The Tribunal allowed the appeal, holding that the appellant was entitled to interest on the delayed refund amount of Rs. 2,973. Interest was to be calculated from three months after the original filing date of the refund claim, as directed by the Commissioner (Appeals). The decision was pronounced on 21-9-2006.

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Issues:
Claim for interest on delayed refund.

Analysis:
The appeal was against the order of the Commissioner (Appeals) upholding the rejection of the claim for interest of Rs. 2,973 on a refund. The refund claim was initially rejected by the Assistant Commissioner, and on appeal, the Commissioner (Appeals) directed for de novo consideration of the refund claim under the provisions of Section 11B of CEA, 1944, without explicitly sanctioning the refund. The appellant sought interest for the delayed refund from the original filing date of 9-9-1997.

The key contention revolved around the date from which interest on the delayed refund should be calculated. The appellant argued that since the Commissioner (Appeals) did not sanction the refund but only ordered for re-consideration, the relevant date for interest calculation should be three months after the original filing date of the refund claim. Therefore, the appellant claimed eligibility for payment of interest amounting to Rs. 2,973.

The Tribunal found merit in the appellant's argument and held that the appellant was entitled to the claimed interest amount. The Tribunal allowed the appeal, emphasizing that the interest should be calculated from three months after the original filing date of the refund claim, as directed by the Commissioner (Appeals). The decision was pronounced in court on 21-9-2006.

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