2024 (5) TMI 367 - HC - Central Excise

Appeal dismissed on interest for delayed refund under Sections 11B and 11BB of Central Excise Act 1944

CGST And Central Excise, Commissioner, Indore (Madhya Pradesh) Versus M/s Indore Treasure Market City Pvt. Ltd.

CGST And Central Excise, Commissioner, Indore (Madhya Pradesh) Versus M/s Indore Treasure Market City Pvt. Ltd. - TMI Issues Involved:The appeal involves the interpretation of Sub-Section (2) of Section 35G of the Central Excise Act, 1944, the eligibility of availing credit on inputs and input services for construction, the condonation of abnormal delay in filing appeal, the admissibility of Cenvat credit before and after a specific date, quantification of credit admissible to the taxpayer, refund claim under Section 11 B of the Central Excise Act, 1944, and entitlement to interest on refunded amount.Interpretation of Sub-Section (2) of Section 35G:The case pertains to an appeal arising from a final order passed by the Customs, Excise and Service Appellate Tribunal, New Delhi. The respondent, engaged in setting up and managing shopping centers, availed credit on inputs and input services for construction. The Department contended that the respondent was not eligible for this credit, leading to a Show Cause Notice and subsequent Order-in-Original confirming the demand. The respondent accepted the order but later filed an appeal after a significant delay, which was condoned by the CESTAT. The CESTAT's final order set aside the original order to the extent that credit availed before a specific date was deemed admissible, remanding the matter for quantification.Condonation of Delay and Admissibility of Cenvat Credit:Following the delay condonation, the CESTAT's decision allowed credit on input services before a certain date, while the department challenged this decision based on the definition of 'inputs' in a notification. The Adjudicating Authority quantified the credit admissible on input services before the specified date but kept the credit on certain inputs out of the remand's purview. The Department filed an appeal challenging this decision.Refund Claim and Entitlement to Interest:The respondent filed a refund claim for the credit availed on input services, which was sanctioned by the Refund Sanctioning Authority. However, the Authority held that no interest was payable as the refund order was issued within three months of the application. The respondent appealed this decision, leading to the CESTAT allowing the appeal and holding that the respondent was entitled to interest on the refunded amount at a specified rate.Conclusion:The High Court dismissed the present appeal by the Revenue, stating that the issues raised were covered by previous judgments. The Court found no substantial question of law for consideration, as similar issues had been addressed in previous cases. The appeal was deemed to lack merit and was therefore dismissed without any order as to costs.