Tribunal grants interest on refund, citing precedent and Section 11BB, in favor of appellant

The Tribunal allowed the appeal, setting aside the impugned order that rejected the appellant's claim for interest on a refund amount. Relying on a previous case involving the same assessee, the Tribunal found the issue to be identical and supported the appellant's contention based on a Supreme Court decision. Consequently, the Tribunal held that the appellant was entitled to interest on the delayed refund amount, in accordance with Section 11BB of the Act, and granted the appeal with consequential relief.

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Issues involved:
1. Claim of interest on refund amount sanctioned to the appellant.

Analysis:
The appeal was filed against an order rejecting the claim of interest on the refund amount sanctioned to the appellant. The Tribunal noted that in a previous case involving the same assessee, the bench had set aside an order rejecting a similar claim for interest on a refund amount. The issue in the current appeal was found to be identical to the previous case. The appellant contended that they were eligible for the refund claim based on a previous Tribunal decision. The Revenue argued that interest should be calculated from a specific date, relying on a decision of the Hon'ble Supreme Court and the High Court of Gujarat. The first appellate authority, in the impugned order, detailed the history of the refund application, show cause notices, and appeal processes. The authority concluded that the appellant was not entitled to interest on the refund amount. However, the Tribunal disagreed and found in favor of the appellant, citing the Apex Court's decision on the commencement of interest payment under Section 11BB of the Act. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief.

The Tribunal emphasized that the judgment of the Apex Court was applicable in this case, supporting the appellant's claim for interest on the delayed refund amount. The Tribunal found no reason to deviate from the view taken in a previous case involving the same assessee. Therefore, the appellant was deemed to have made a valid case for interest on the delayed refund amount. As a result, the impugned order was set aside, and the appeal was allowed with any necessary consequential relief.

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