Payment of interest while ordering refund

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....fund. Instances have come to the Notice of the Board where the Courts have awarded payment of interest, while ordering refund of excise duties. In view of executive instruction issued by the Ministry, the Collectors are required to refer such cases to the Ministry for sanction of the interest amounts. 2. There is no provision in the Central Excises & Salt Act to grant interest in such cases.....

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....High Court or other judicial forums, the Collectors should examine the following namely :- (a) the liability of the Department to refund the amount claimed, on merits; (b) whether the claim is admissible in terms of provisions of Sec. 11B of the Central Excise & Salt Act; and (c) whether the grant of refund in such cases would constitute unjust enrichment. Proper defence, should be put....