2007 (12) TMI 44

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....have rejected the claim of the appellants for interest on delayed sanction of refund, on the ground that the relevant date for computing the period of three months, after the expiry of which interest becomes payable, is 24-12-2004 and the refund amount was sanctioned on 18-3-2005 which is prior to the expiry of three months from 24-12-2004. 2.  I heard both sides. The appellant's claim tha....

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....le Rajasthan High Court in J.K. Cement Works v. Asstt. Commissioner of Central Excise & Customs, 2004 (170) E.L.T. 4 (Raj.) holding that liability to pay interest on refund amount is not tagged to adjudicative decision that duty was paid in excess and refund is to be sanctioned, if ultimately found to be payable after the expiry of the three months from making the application for refund. In that c....

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....aid. However, no interest on the principal amount was paid. This led to the assessees filing DBC Writ Petition No. 5925 of 2003 before the Jodhpur Bench of the Hon'ble Rajasthan High Court. The argument of the Revenue was that the refund did not become due until the Tribunal held in favour of the assessee and, therefore, the period of three months within which refund was to be made with out intere....

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....dustries Ltd. - 2007 (215) E.L.T. 380 = 2007 (6) S.T.R. 392 also holds the same view. The Apex Court decision in the case of CCE, Hyderabad v. ITC Ltd. - 2005 (.179) E.L.T. 15 (S.C.) = 2005 (66) R.L.T. 234 (S.C.) relied upon by the authorities below is in the context of refund of pre-deposit wherein the Apex Court has held that interest on delayed refund is to be paid after the expiry of three mon....