Appeal overturns denial of interest on refund; Adjudicating Authority directed to pay interest from specified dates.

The appeal was allowed, overturning the initial denial of interest on the refund. The Adjudicating Authority was directed to pay interest from 9th August, 2019, until the disbursement date of 30th December, 2020, with adjustments for any prior interest payments, to be disbursed within 45 days.

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Issues involved:
The relevant date for interest on refund entitlement.

Details of the judgment:
The Appellant, engaged in manufacturing various pumps, imported raw materials duty-free for export supplies but later paid duties due to export obligation shortfall. Post-GST implementation, the Cenvat credit for duties paid could not be availed or carried forward. Two refund applications were filed, which were initially rejected but later sanctioned subject to verification of unjust enrichment. However, interest on the refund was denied as documents were submitted late. The Commissioner (Appeals) allowed interest payment, citing precedents, and directed the Adjudicating Authority to pay interest u/s 11 BB of the Act from the date of the refund claim. The denial of interest was deemed illegal and contemptuous, leading to the appeal being allowed. The Adjudicating Authority was directed to grant interest from 9th August, 2019, till the disbursement date of 30th December, 2020, with adjustments for any prior interest payments, to be disbursed within 45 days.

Conclusion:
The appeal was allowed, setting aside the impugned order and directing the Adjudicating Authority to pay interest on the refund as per the Commissioner (Appeals) directions, starting from 9th August, 2019, until the disbursement date of 30th December, 2020, with adjustments for any prior interest payments, to be disbursed within 45 days.

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