Liability of interest payament on wrong appropriation

[subrahmanyam nookala]

while sanctioning the rebate claims the Asst. Commissioner has exercised section 11 of CE ACT 1944. At that time one of our confirmed demand is pending before Commissioner (Appeals). But subsequently it was allowed by Commissioner in our favour. It means that the appropriation has done by the Asst. Commissioner is decided as not sustainable. Immediately we submitted the Commissioner (Appeals) order to the AC to sanction our refund along with interest under section 11BB delay of refunds along with interest. To the best of my knowledge and basing on Honourable Supreme court judgment ' Renbaxy India Ltd., we are eligible for interest after completion of 3 months from the date of our refund claim lodged in ACES. Please comment

AI Summary

Party Seeks Interest on Delayed Refund Due to Wrong Fund Appropriation Under Section 11BB of Central Excise Act A party raised a query regarding the liability for interest payment due to the wrong appropriation of funds by the Assistant Commissioner under Section 11 of the Central Excise Act, 1944. The appropriation was later deemed unsustainable by the Commissioner (Appeals), who ruled in favor of the party. The party then sought a refund with interest under Section 11BB for delays in refunds, referencing a Supreme Court judgment involving Renbaxy India Ltd., which supports their eligibility for interest after three months from the refund claim submission date. They are seeking comments on this matter.