Central Excise refund under protest- Interest eligibility

[Asked by Guest]

We had paid excise duty in 1991 under protest as demanded by CCE ,we appealed and matter went upto Supreme Court which dropped the proceedings in 2004 . Due to severe health issues we couldn;t claim the refund . Now I want to do it since there is no time limit to claim refund paid under protest . Also wanted to check can I claim interest on the additional duty(under protest) from 1991 to 2004 .And if yes then what % .

Thanks

Girish

[DR.MARIAPPAN GOVINDARAJAN]

If you pay the amount under protest the same would be considered as deposit. When refund is eligible interest can be claimed on that amount as fixed by the Central Government from time to time.

[YAGAY and SUN]

Endorsing the very view of Govindrajan Sir''.

[Ganeshan Kalyani]

Good that you are proceeding for claiming refund. The interest is receivable on the amount of predeposit.

Thanks @all . Can anybody let me what % interest can i claim for my refund ?

[Ganeshan Kalyani]

Please refer below provison:

Section 11BB

:

Interest on delayed refunds

Hi 11B is for delayed payment of interest after 3 months . I want to know what interest rate can i claim for period 1991-2004 during which dept held my deposit .

[Ganeshan Kalyani]

Section 11B. Claim for refund of duty.-

(1) Any person claiming refund of any ²[duty of excise and interest, if any, paid on such duty] may make an application for refund of such ³[duty and interest, if any, paid on such duty] to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise before the expiry of one year from the relevant date in such form and manner as may be prescribed and the application shall be accompanied by such documentary or other evidence (including the documents referred to in section 12A) as the applicant may furnish to establish that the amount of ²[duty of excise and interest, if any, paid on such duty] in relation to which such refund is claimed was collected from, or paid by, him and the incidence of such ³[duty and interest, if any, paid on such duty] had not been passed on by him to any other person:

Provided that where an application for refund has been made before the commencement of the Central Excises and Customs Laws (Amendment) Act, 1991, such application shall be deemed to have been made under this sub-section as amended by the said Act and the same shall be dealt with in accordance with the provisions of sub-section (2) substituted by that Act;

Provided further that the limitation of one year shall not apply where any ³[duty and interest, if any, paid on such duty] has been paid under protest.Thanks

Refer the bold text in bold.

[YAGAY and SUN]

Interest would be @ 6% p.a.

[VedNarayan Rawat]

No refund for intervening period during which no claim is made unless Supreme Court expressly directed for refund of duty paid under protest.

AI Summary

Refund of duty paid under protest: interest may be claimed under Section 11B at rates fixed by government.
Payment of excise duty made under protest is treated as a deposit and, when refund is eligible, interest may be claimed at rates fixed by the Central Government. Section 11B provides for refund of duty and interest and prescribes a one year limitation for refund applications, with an exception where duty was paid under protest; applications require documentary evidence establishing payment and non pass through of the incidence.