Refund of Interest paid under Central Excise

[Praveen Kumar]

1. An assessee has paid excess Interest under Central Excise.

2. Can he apply for the refund of the same. If that is not possible can he adjust that interest against any duty liability. What is the way out ?

Refund can be claimed under section 11B of Central Excise Act, 1994. Self adjustment against duty liability not allowed.

[YAGAY and SUN]

Dear Praveen,

You would have to seek refund from the Department under Section 11B of the Central Excise Act, 1944 as amended from time to time and this is subject to provision of unjust enrichment as well as within one year you can file the refund claim. Further, if you had paid it under protest then such time limit is not applicable.

As rightly state by Mr. Ashish that self adjustment is not allowed, we do endorse his point of view.

Regards

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Refund of excess interest can be claimed under section 11B, subject to unjust enrichment and limitation rules.
Excess interest paid under central excise may be recovered by claiming a refund under statutory refund provisions, subject to the unjust enrichment doctrine and the usual one year limitation for filing refund claims; the limitation may not apply if the payment was made under protest. Self adjustment of excess interest against duty liabilities is not allowed and the prescribed refund procedure must be followed.