2016 (12) TMI 972 - AT - Central Excise

Tribunal Upholds Interest Grant Decision under Section 11BB

M/s Agmotex Ltd. (Now known as Agmotex Fabrics) Versus Commissioner of Central Excise, Kanpur

The Tribunal upheld the Commissioner (Appeals) decision to grant interest on the refund from a specific date in accordance with Section 11BB of the ... Entitlement to interest - Section 11BB of Central Excise Act, 1944 - the claim of refund was filed on 08.09.2004 and the refund was sanctioned on 27.06.2005 - whether the appellant is entitled to interest? - Held that: - Section 11BB of Central Excise Act, 1944 is amply clear that the interest is payable after three months of the filing of claim for refund. The claim for refund was filed on 08.09.2004 and Ld. Commissioner (Appeals) has allowed the interest from 07.12.2004. Therefore, we do not find any infirmity in the impugned order - appeal dismissed - decided against appellant. Issues:Refund application for duty and interest - Eligibility for interest on refund - Interpretation of Section 11BB of Central Excise Act, 1944.Analysis:The appeal was filed against Order-in-Appeal No.167-CE/APPL/KNP/06 dated 27.04.2006 passed by the Commissioner (Appeals). The appellants, engaged in dyeing and processing of fabrics, sought a refund of &8377; 19,00,694/- along with interest of &8377; 42,98,862/ based on a previous order-in-appeal No.246-CE/APPL/KNP/2003. The original authority allowed the refund but did not address the interest claimed. The Commissioner (Appeals) held that interest was payable to the appellant from 07.12.2004 to 27.06.2005 under Section 11BB of the Central Excise Act, 1944. The appellant challenged this decision before the Tribunal.The grounds of appeal were based on the contention that the appellants were entitled to interest on the refund from 01.10.2003 onwards as per the previous order-in-appeal dated 30.09.2003. The appellant argued that the interest should be paid by the department for the period from 01.10.2003 till 27.06.2005.After considering the arguments, the Tribunal found that Section 11BB of the Central Excise Act, 1944 stipulates that interest is payable after three months of filing a refund claim. Since the claim was filed on 08.09.2004 and the interest was allowed from 07.12.2004 by the Commissioner (Appeals), the Tribunal upheld the decision and dismissed the appeal. The Tribunal concluded that there was no infirmity in the impugned order and upheld the interest payment from the specified date.In summary, the Tribunal affirmed the Commissioner (Appeals) decision to grant interest on the refund from a specific date based on the provisions of Section 11BB of the Central Excise Act, 1944. The appeal was dismissed, and the appellant's claim for further interest was not upheld.