TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Appellant entitled to interest on refunded duty; Tribunal sets aside denial under Rule 7(5)</h1> <h3>M/s LG Electronics India Pvt. Ltd. Versus Commissioner of Central Excise, Noida</h3> M/s LG Electronics India Pvt. Ltd. Versus Commissioner of Central Excise, Noida - TMI Issues:- Appellant denied interest on refunded duty amount by Appellate Authority.- Commissioner (Appeals) partly allowed the appeals but denied interest on delayed payment of refund.- Dispute over the entitlement of interest under Rule 7(5) of Central Excise Rules.Analysis:1. The appeals were filed by the assessee challenging the orders passed by the Appellate Authority, where refund of duty was allowed but interest on the amount was denied. The appellant, engaged in manufacturing various products, had paid excess duty and sought a refund, which was partly granted by the Adjudicating Authority. However, interest under Rule 7(5) of the Central Excise Rules was not paid.2. Appeals were made before the Commissioner (Appeals) who partly allowed them, stating that there was sufficient evidence to show that the burden of duty incidence had not been passed on. However, interest on delayed refund payment was denied. The appellant contended that interest should be paid as per the rate specified by the Central Government, citing a Division Bench order in a similar case.3. The dispute centered on the payment of interest under Rule 7(5) of the Rules. The Commissioner (Appeals) linked the grant of interest to the provisions of Section 11B and Section 11BB of the Central Excise Act. However, Rule 7(5) is an independent provision related to the payment of interest on refund consequent to a final assessment order, not subject to Sections 11B and 11BB.4. The Central Government had specified the rate of interest at 6% through a Notification. The Tribunal found that the appellant was entitled to interest as per the notification rate, contrary to the Commissioner (Appeals) view. Therefore, the part of the order denying interest under Rule 7(5) was set aside, and the appellant was held entitled to interest from the specified date till the refund date, to be paid promptly within two months of the order.5. The judgment highlights the correct interpretation of Rule 7(5) of the Central Excise Rules, emphasizing the entitlement of interest on refunded duty amounts as per the rate specified by the Central Government, separate from the provisions of Sections 11B and 11BB of the Act.
TaxTMI 