2014 (3) TMI 374

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....or payment of duty on processing of textile fabric w.e.f. 16-12-1998 as per the scheme notified under Notification 43/98-C.E. (N.T.), dated 10-12-1998. During Oct. 1999 and Jan. 2000 there were periods of more than 7 days when their factory was closed for production though the compounded duty liability for the months were paid in advance. The appellant had followed the procedure for claiming abatement of advance duty paid in such situations and they filed claims for abatements for the said periods on 29-3-2000 and 27-1-2000 respectively. After a long period of more than 9 years the Commissioner sanctioned an amount of Rs. 2,58,240/- vide letter C. No. IV/16/271/2007-CX. Pol, dated 26-3-2009 and directed the Assistant Commissioner of Central....

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..../- being interest from 6-7-2009 to 24-7-2009 and rejected the rest of the claim. Aggrieved by the order of the Commissioner, appellants have filed this appeal. 3. I have heard both sides in this matter. 4. The adjudicating authority in the impugned order has recorded the reasons for delay in deciding the application for abatement of duty filed by the appellants on 6-4-2009 and not on 29-3-2000 and 27-1-2000 as claimed by the appellant. So according to the adjudicating authority interest would accrue only from 6-7-2009 that is after expiry of three months from the date of filing of the claim by appellant. Para 20 of the adjudication order is reproduced below : "It is seen from the Erode-II Divn. A.C.'s refund Sanction Orde....

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.... to them or whether it is the date on which the appellant submitted necessary papers, for issue of cheque, to Assistant Commissioner of Central Excise, Erode in pursuance of the order dated 26-3-2009 of the Commissioner sanctioning the refund. 6. The relevant extracts from Section 11B and Section 11BB of the Central Excise Act are reproduced below : "SECTION 11B. Claim for refund of [duty and interest, if any, paid on such duty. - (1) Any person claiming refund of any [duty of excise and interest, it any, paid on such duty] may make an application for refund of such [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 [o....

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....at the matter is a refund of duty under Rule 96ZQ and not under Section 11B. I do not find any merit in this argument because Section 11B does not make any distinction with regard to duty charged as per Section 3 of the act or Section 3A of the Act. Rule 96ZQ only provide the machinery provisions to decide whether duty liability was discharged correctly. In the case of levy under Section 3 refund can arise due to notifications issued under Section 5A of the Act and if excess payments arise refund has to be granted to subject to provisions of Section 11B. Thus I am not able to see any merit in this argument. 8. Further there is an inherent contradiction in holding that the papers filed with Deputy Commissioner, Erode in pursuance of ....