Appellant entitled to interest on delayed refund at 12% per annum.

The Tribunal ruled in favor of the appellant, stating they are entitled to claim interest on the delayed refund of the rebate amount from the date of deposit until realization. Citing relevant cases and statutory provisions, the Tribunal determined the interest rate at 12% per annum, to be calculated from the date of sanctioning of the rebate claim until the actual refund date. The Adjudicating Authority was directed to comply with the order within 30 days, and the appeals were resolved accordingly.

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Issues Involved:

1. Whether the appellant is entitled to interest on the delayed refund of the rebate claim.
2. The rate of interest applicable for the delayed refund.

Summary:

Issue 1: Entitlement to Interest on Delayed Refund

The appellant contested the deduction of interest from their rebate claims by the Adjudicating Authority in 2016. The Tribunal had previously allowed their appeals, leading to the refund claim being sanctioned. However, the appellant argued they were entitled to interest for the intervening period when the rebate amount was withheld. The Tribunal cited several cases, including Riba Textile Ltd. vs CCE and Sandvik Asia Ltd vs. CIT, Pune, to support the appellant's right to interest on delayed refunds. The Tribunal concluded that the appellant is entitled to claim interest on the delayed refund from the date of deposit until realization.

Issue 2: Rate of Interest Applicable

The Tribunal examined precedents and statutory provisions, including Section 243 of the Income Tax Act, 1961, and Section 35FF of the Central Excise Act, 1944, which are parimateria. The Tribunal referred to the Sony Pictures Networks India Pvt. Ltd. and Ghaziabad Ship Breakers Pvt. Ltd. cases, which established a 12% interest rate on delayed refunds. Consequently, the Tribunal held that the appellant is entitled to interest at 12% per annum from the date of sanctioning of the rebate claim (04.02.2016 and 12.03.2016) until the date of actual refund (31.03.2021 and 10.06.2021).

Conclusion:

The Tribunal directed the Adjudicating Authority to comply with the order within 30 days, granting the appellant interest at 12% per annum on the delayed refund. The appeals were disposed of accordingly.

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