Appellant entitled to interest refund under Central Excise Act.

The Tribunal found that the appellant was entitled to interest on the refunded amount for the period from 13-4-2012 to 1-7-2014 as per Sec. 11BB of the Central Excise Act, 1944. The adjustment made on 1-7-2014 was deemed unsustainable, leading to the refund being paid on the same date. Consequently, the appeal was allowed, granting the appellant interest on the refunded amount up to the refund date, resolving the issue in favor of the appellant.

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Issues:
1. Entitlement to interest during a specific period.
2. Entitlement to interest on the refund up to a certain date.

Analysis:
1. The primary issue in this case revolved around the entitlement of the appellant to interest during the period from 13-4-2012 to 1-7-2014. The Tribunal noted that while the interest on the refund claim was to be calculated from the expiry of three months since the receipt of the refund claim application, the second issue pertained to the period up to the date of the impugned order or the date when the refund was sanctioned and adjusted against a pending confirmed demand. The appellant argued for interest between 13-4-2012 to 1-7-2014. The Commissioner (Appeals) initially held that since the amount was adjusted against the demand on 12-4-2012, there was no need to interfere with the payment of interest for the subsequent period. However, it was later revealed that the adjustment made on 1-7-2014 was not sustainable, leading to the refund being paid to the appellant on the same date. Consequently, the Tribunal found that the appellant was indeed entitled to interest on the amount refunded on 1-7-2014 for the period from 13-4-2012 to 1-7-2014, in accordance with Sec. 11BB of the Central Excise Act, 1944.

2. The Tribunal concurred with the appellant's contention regarding the entitlement to interest on the refunded amount for the specified period. The judgment emphasized the significance of the actual refund date, 1-7-2014, as the decisive factor in determining the liability for interest payment. By highlighting the provisions of Sec. 11BB of the Central Excise Act, 1944, the Tribunal clarified that the appellant was rightfully entitled to interest up to the date of the refund, considering the factual circumstances surrounding the adjustment and subsequent repayment. Therefore, the appeal was allowed, granting the appellant the interest on the refunded amount for the period from 13-4-2012 to 1-7-2014, thereby resolving the issue in favor of the appellant and disposing of the appeal accordingly.

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