TaxTMI 
TaxTMI 
2010 (5) TMI 40
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....HMED, J (ORAL) 1. This is a case which shows as to how the Central Excise Department can harass a manufacturer in the payment of rebate and thereafter in the payment of statutory interest on the delayed payment of rebate. 2. The petitioner seeks the quashing of the order-in-original bearing No. R-250/REF/08-09 dated 30.03.2009 to the extent the said order rejects the claim of interest on delayed sanction of rebate to the petitioner on the ground that the same is illegal and contrary to the order in appeal No. 80 to 144/CE/DLH/2008 passed by the Commissioner (Appeals), Central Excise, Delhi-I on 24.06.2008. The petitioner also seeks a writ of mandamus or any other appropriate writ or direction directing the respondent No. 4 (Ass....
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.... to the applicant, interest at such rate as fixed by the Central Government by notification in the official gazette, on such duty from the date immediately after the expiry of three months from the date of receipt of such an application till the date of refund of such duty. 5. Despite the clear provisions of Section 11BB and the clear directions given by the Commissioner (Appeals), the delayed refunds were paid to the petitioner without any element of interest. We should also note that the order dated 24.06.2008 passed by the Commissioner (Appeals) attained finality inasmuch as the Department did not carry the matter any further. It is, therefore, clear that the Assistant Commissioner had merely to comply with the directions given by the....
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....ith the Assistant Commissioner, Divn-IV, Delhi-I since year 2004-05 and despite order No. 1109/2006 dated 27.12.2006 of Govt. of India (JS-RA) in our favour, the said claims are not being settled. Even the show cause notices issued for denial of aforesaid rebate claims have been dropped, yet the rebate claims are pending. We would like to submit that due to non-sanction of due rebate claims on time, we have faced lots of financial difficulties because of which our business and export have seriously suffered. We understand that we are entitled to statutory interest since the grant of refund has been delayed by more than three months from the date of filing of the rebate claim. However, keeping in view the cordial discussion held in your offi....
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....ch the petitioner was suffering great financial difficulties. Faced with such a situation, the petitioner was compelled to issue the said letter dated 07.08.2007 where it had submitted that, as a token of good gesture, they would undertake to forego the interest involved in respect of the said rebate claims if:- (1) All the sixty one export rebate claims pertaining to export of menthol powder are sanctioned and released on or before August, 17, 2007; (2) All future export rebate claims for export of menthol powder, menthol crystals and peppermint oil will be sanctioned and released within statuary period provided under law. 8. From the above, it is clear that the undertaking to forego interest was not unconditional but was subject ....