Central Excise Interest Eligibility

[Abhishek Tiwari]

We had paid excise duty in 2000 under protest as demanded by CCE ,we appealed and matter went upto Supreme Court which dropped the proceedings in 2017. We have received refund,so I wanted to check can I claim interest on the additional duty(under protest) from 2000 to 2017 .And if yes then what % .And under which section ?

Thanks

Abhishek

[KASTURI SETHI]

Section 11 B of Central Excise Act, 1944 is meant for both duty and interest paid.

Since you paid duty under protest, it is clear that you had not paid interest. You want to claim interest because your money was locked up in Court case. It remained in the custody of Central govt. for about 18 years. You suffered loss of interest for a considerable period. When any amount is locked up in a court case, it depends upon the nature of decision of the Court under what form consequential relief is to be given. You should have taken up this issue at the time of filing writ petition with the Supreme Court i.e. at the initial stage. Normally, in such a situation, especially, in the absence of any claim in the main appeal, interest is not paid.

However, there is no harm in fighting the case for interest. Why you should suffer without any fault of yours ? Why Govt. should be enriched by way of retaining money (without interest ) which did not belong to Govt. Though proved later on.

 

 

[CSSANJAY MALHOTRA]

Duty payment under protest means duty paid by assessee at his own due to interpretation or lack of clarity on tax laws. Hence As the same does not have unjust enrichment and right to refund arises consequent upon appellate authority judgements, interest if any arises after 90 days or specified period for refund processing and not earlier to same.

[YAGAY andSUN]

Please check the order of the Hon'ble Supreme Court. There must be a phrase stating about interest and no order as to cost etc.

AI Summary

Interest on refunded excise duty: entitlement hinges on statutory provision, refund processing timelines, and presence of an interest order. Entitlement to interest on excise duty paid under protest depends on statutory provisions and whether interest was claimed or ordered in the appellate relief. Section 11B is cited as the provision covering refunds and interest, but interest is not automatic; recoverability is tied to refund processing timelines and whether the decision expressly grants interest, with unjust enrichment arguments supporting but not guaranteeing recovery.