2000 (6) TMI 40 - CGOVT - Central Excise

Interest on duty refund granted beyond application date under Central Excise Act

The Revision Application challenged the Order-in-Appeal that restricted interest on duty refund under Sec. 11BB of the Central Excise Act. The main issue ... Refund Issues involved: Determination of admissibility of interest on duty refund u/s 11BB of the Central Excise Act, 1944.The Revision Application was filed against the Order-in-Appeal passed by the Commissioner (Appeals), Mumbai, which restricted the calculation of interest on duty refund, rejecting the interest claimed by the applicants. The main point for determination was whether interest would be admissible from the three months period of filing the claim or three months from the date of presenting the Revision Order of the Government to the Assistant Commissioner, as per Sec. 11BB. The applicants relied on various case laws to support their claim.The Government observed that while some case laws supported the applicants' plea, others were not directly applicable to the current case. It was noted that interest should be paid on duty ordered to be refunded u/s 11B(2) of the CEA, 1944 from the date immediately after the expiry of three months from the date of receipt of the refund application till the date of refund of such duty. Following this precedent, the Revision Application was allowed with consequential relief.