Appellate tribunal denies interest on refunded amount; emphasizes timely refund & lack of protest payment.

The appellate tribunal upheld the decision to reject the appellant's claim for interest on the sanctioned refund amount under Section 11BB of the Central Excise Act, 1944. The tribunal emphasized that the refund was granted within the statutory period, and as the appellant had not paid the amount under protest, they were not entitled to interest on the refunded amount. The appeal was dismissed, affirming the findings of the Commissioner (Appeals) that there was no infirmity in the order.

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Issues:
1. Claim of interest on sanctioned refund amount under Section 11BB of Central Excise Act, 1944.

Analysis:
The appeal in this case was filed to challenge an order related to the recovery of excise duty on goods destroyed in a fire accident at the appellant's factory premises. The appellant, engaged in the manufacture of TPR compound, faced a demand of Rs. 33,02,559/- as excise duty on the destroyed goods. After a series of legal proceedings, including appeals and refund applications, a refund of Rs. 13,96,738/- was sanctioned to the appellants. Subsequently, the appellant filed an application for interest on the sanctioned amount from the date of payment until the date of the refund order. The rejection of this interest claim was the central issue in this appeal.

The appellant contended that the interest claim was wrongly rejected under Section 11BB of the Central Excise Act, 1944. They argued that this section applies only when a refund is claimed against the payment of duty, not against a deposit made under protest. On the other hand, the Department argued that the deposit in this case was not made under protest and that the refund was sanctioned within the prescribed period under the Act. The Department maintained that there was no basis for the interest claim and requested the dismissal of the appeal.

Upon reviewing the case and considering the arguments presented, the Member (Judicial) found that the appellant had reversed the Cenvat Credit of Rs. 13,96,738/- during the pendency of the demand for excise duty on the destroyed goods. It was noted that there was no evidence to suggest that this amount was paid under protest. The Member concluded that since the refund was sanctioned within three years of the application, the appellant was not entitled to interest on the refunded amount. The Member upheld the findings of the Commissioner (Appeals) and dismissed the appeal, stating that there was no infirmity in the order.

In summary, the appellate tribunal upheld the decision to reject the appellant's claim for interest on the sanctioned refund amount, emphasizing that the refund was granted within the statutory period and there was no basis for the interest claim under Section 11BB of the Central Excise Act, 1944.

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