TaxTMI 
TaxTMI 
2016 (11) TMI 1222
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..../2009:- Briefly stated the facts of the case are that the Appellants had filed a refund claim for Rs. 69,94,403.31 on 31.08.1998. The said refund claim was adjudicated vide Order No.R/47/2000, dt.30.06.2000 and an amount of Rs. 68,63,266.51 was sanctioned and Rs. 64,824.06 was rejected. However, from the said sanctioned amount, Rs. 19,42,149.78 was adjusted/deducted against the outstanding dues confirmed in another proceeding vide OIO No.3/BRC/MP/2000, dt.09.06.2000. The Appellant challenged the said order dt.09.06.2000 before the Tribunal and the appeal was disposed by the Tribunal by Order dt.12.06.2006, remanding the case to the Commissioner for re-adjudication. In de-novo proceed....
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....31.08.1998 and refund was sanctioned on 30.06.08, but the amount of Rs. 19,42,149.79 was wrongly adjusted/deducted from the legitimate sanctioned refund claim against the outstanding demand confirmed under Order dt.09.06.2000 i.e. before the expiry of the appeal period allowed under Central Excise Act, 1944. It is her contention that interest is due from the date of wrongful adjustment of amount i.e 01.07.2000, against another demand, which was subsequently set aside in the Appellate proceeding. In support of her contention she referred to the judgment of Hon'ble Supreme Court in the case of Ranbaxy Laboratories Ltd Vs UoI - 2011 (273) ELT 3 (SC), and the judgments of this Tribunal in the case of Super Casettes Industr....
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....and the amount of refund was sanctioned to them on 7.4.2010 against their application for refund of the said amount on 4.1.2010 (received by the Department on 8.1.2010), therefore, it was also sanctioned within three months from the date of filing of the refund claim, accordingly, no interest is also payable under Section 11BB of Central Excise Act, 1944. 7. Heard both sides and perused the records. The limited issue for determination is: whether the Appellants are eligible to interest on the amount refunded to them viz. Rs. 16,01,260/- and Rs. 81,984/- from 01.7.2000 i.e. the date of adjustment of the said amount from their sanctioned refund amount of Rs. Rs. 68,63,266.51 or from the date ....
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....hree months from the date of receipt of such application till the date of refund of such duty: Provided that where any duty ordered to be refunded under sub-section (2) of Section 11B in respect of an application under sub-section (1) of that section made before the date on which the Finance Bill, 1995 receives the assent of the President, is not refunded within three months from such date, there shall be paid to the applicant interest under this section from the date immediately after three months from such date, till the date of refund of such duty. Explanation. Where any order of refund is made by the Commissioner (Appeals), Appellate Tribunal, National Tax Tribunal or any court against an order of the Assistant....
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....ng confirmed demand which was the subject matter before the Tribunal and had directed the lower authorities to refund the same immediately but the date of passing of the Tribunal's order cannot be considered to be relevant date for the purpose of interest. In terms of the provisions of Section 11BB of Central Excise Act, 1944 if the refund claims filed are not sanctioned within three months, the Revenue is under legal obligation to pay till interest till the date the same are actually given to the assessee. As such, in terms of the said provisions of law, the interest liability of the Revenue would start running from the expiry of three months from the date of filing the rebate claims/refund claims. The said issue stands considered by the r....