2017 (9) TMI 1376

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....riod, in which, it had remained in custody of the respondent. It is admitted to the parties that the petitioner had deposited duty of excise amounting to Rs. 1,27,41,136/- pursuant to the interim orders of the Appellate Tribunal in a pending appeal on 24.04.2014 and 28.04.2014. The appeal was ultimately allowed on 03.08.2016 entitling the petitioner for the refund of the above amount. The petitioner moved an application for the refund of the aforesaid excise duty. The application was allowed vide order dated 28.11.2016 and the entire amount of excise duty deposited by the petitioner was directed to be refunded and was actually refunded to the petitioner on 28.11.2016 itself. The contention of Sri Mathur is that in view of the amended Sec....

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....months from the date of communication of the order of the Appellate Authority, interest shall be payable at the rate specified under Section 11BB of the Act after the expiry of the aforesaid three months. A reading of the aforesaid provision reflects that any amount deposited pursuant to the order passed by any Authority is liable to be refunded within a period of three months from the date, the order is set aside by the Appellate Authority and in case, it is not so refunded within three months of the communication of the appellate order, interest at the specified rate shall be payable on it for the delayed period after three months. The aforesaid provision of Section 35FF of the Act was amended by the Finance Act No. 25 of 2014 with effe....

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....e expiry of three months of the communication of the order. In the present case, the amount was deposited on 24.04.2014 and 28.04.2014, the appeal entitling the refund was allowed on 03.08.2016 and the refund was actually made on 28.11.2016. All the aforesaid dates are earlier to 06.08.2016, the date of enforcement of Finance Act No. 25 of 2014. Thus, in view of the proviso to the amended Section 35FF of the Act, the payment of interest to the petitioner would be governed by the unamended Section 35FF of the Act. Accordingly, if at all the petitioner would be entitled to interest on the amount refunded, it will be for the period the amount had remained with the respondents after three months from the date of communication of the appellat....

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....venue and ultimately, refunded, the assessee is entitled to interest even though there may not be a specific provision to that effect. This was laid down following the decision of the Apex Court in the case of Union of India through Director of Income Tax Vs. TATA Chemicals Limited (2014) 6 SCC 335, wherein it was held that when the collection is illegal, there is corresponding obligation on the Revenue to refund such amount with interest. The aforesaid decisions would not be any help of the petitioner inasmuch as there was neither any illegal detention nor any unauthorized collection of any amount by the Revenue, rather the said amount was deposited by the petitioner pursuant to the interim direction of the Tribunal. The law is well set....