2016 (11) TMI 571

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....S. K. Shukla, Authorised Representative ORDER Heard both sides and perused the records. 2.  The issue involved herein is whether interest would be payable on the refund sanctioned w.e.f. 3 months of filing refund application, or from 3 months after the final decision in favour of the appellants by the appellate authority.   The Ld. Counsel submits that the issue is squarely....

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....sed Representative for Revenue reiterates the findings of the lower authorities and submits that though the refund was sanctioned, initially it was transferred to Consumer Welfare Fund and litigation was in progress as to whether principles of unjust enrichment are violated.  Ultimately the decision of the Commissioner (Appeals), which was accepted by the department, set the said issue at res....

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....y Pvt. Ltd. (supra) held that interest would be payable even if initially the refund of the amount was credited to the consumer welfare fund.  We also find that the Hon'ble Karnataka High Court in the case of Pfizer Products India Pvt. Ltd. (supra), considered the circumstances which are identical to the present case and held as follows:- "11. From plain reading of the said Section, it is ....

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....urt is very categorical that the interest on delayed refund would be payable from the date of expiry of 3 months from the date of refund application, even when the issue of eligibility of refund was settled only subsequently in appeal by the Commissioner, Tribunal or Court.  The Hon'ble High Court has held that even in such cases, the interest would be payable from 3 months from the date of r....