2016 (3) TMI 305

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....iyanka Goel, Advocate For the Respondent: Mr. S. Nanthuk, J.C.D.R. ORDER PER: B.RAVICHANDRAN The present appeal is against order dated 10.07.2006 of Commissioner (Appeals), Bhopal-II. The appellants are engaged in the manufacture of oxygen and ethylene gas liable to Central Excise Duty. They are availing small scale exemption in terms of Notification No.175/86. There was an excess payment of....

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....the present appeal has been filed. 2. The ld. Counsel for the appellant submitted that the amount claimed as refund has been collected and retained by the Department without the authority of law and the same has to be restored back to the appellant with the interest. It is applicable from the date of such improper recovery. She also submitted that they are eligible for interest on the delayed pay....

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.... that since the amount was remitted by the appellant by using credit, the refund was also sanctioned by re-credit of such account. He submitted that there is no legal infirmity in such action. 4. We have heard both sides and examined appeal records. Regarding the interest, we find that for the first time the legal provision for payment of interest on refund was introduced in the law only on 26.05....

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....t a case in their favour. It is seen that in the impugned order, the ld. Commissioner (Appeals) also categorically recorded that refund of duty paid through modvat account is to be given in cash only, when the assessee concerned is not in a position to utilize the credit. We find in the present case the appellants are operating under small scale exemption scheme and it is recorded that in the end ....