2010 (12) TMI 278

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....e appellants. Rep. by Sh. Ramesh Nair, Advocate for the respondent. Per: Sh. Justice R.M.S. Khandeparkar: Heard the DR for the appellant and learned Advocate for the  respondent. 2. The only dispute which is sought to be agitated in the matter relates to the date from which the interest liability would start in case of refund of the amount which was deposited by the assessee pursu....

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....ng the impugned order, the DR submitted that there is no provision of law which could entitle the assessee to claim interest from the date of the order of the Tribunal.  Even applying the provision of Section 11BB, the interest could be from the day on expiry of three months from the date of application for refund.  Attention was also drawn to the decision of the Supreme Court in the mat....

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....ssee.  In fact,  that is the mandate of amended provision  under Section 35FF  of the Act.  It provides that where an amount deposited by the respondent in pursuant  of an order passed by the Commissioner (Appeals) or Appellate Tribunal under the first proviso to Section 35F, is required to be refunded consequent upon the final order of the Appellate Authority and suc....

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....d of such amount by the department does not arise.  If any such delay is caused, certainly the Government will have to pay interest on such amount to be refunded.  Undoubtedly, Government would be entitled to recover such expenditure incurred from the officer or officers, as the case may be, responsible to cause delay in refunding the amount.  But that itself will be no justificatio....