2018 (6) TMI 44

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....nterest was granted. The appellant filed an appeal against the refund sanction order No.21/Ref/City-I/NGP Divn/2016 dated 29.7.2016 before the Commissioner (Appeals). The said appeal filed before the Commissioner (Appeals) was rejected and the order-in-original dated 29.7.2016 was upheld. Therefore, the appellant is before me. 2. Shri Vinay Jain, learned Chartered Accountant appearing on behalf of the appellant, submits that the appellant is entitled for the interest right from the date of deposit of the amount as the Tribunal held that the amount was not payable. He relied upon the following judgments:- (i) ONGC Ltd. vs. CC - 2007 (215) ELT 166 (SC); (ii) Futura Ceramics Pvt. Ltd. vs. CCE&ST - 2017 (12) TMI 701; (iii) RHL Profiled Ltd.....

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....x, interest and 25% penalty. Thereafter they filed an appeal before the Tribunal. After allowing the appeal by the Tribunal, the appellant filed a refund claim for the deposit so made. The refund was sanctioned within three months from the date of filing the application. The refund was admittedly sanction under Section 11B. For the purpose of refund under Section 11B, the provision for interest is provided under Section 11BB which reads as under:- "11BB. Interest on delayed refunds. - If any duty ordered to be refunded under sub-section (2) of section 11B to any applicant is not refunded within three months from the date of receipt of application under sub-section (1) of that section, there shall be paid to that applicant interest at such....

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....statute of Central Excise Act, cannot go beyond the statutory provision made under that Act. Therefore, the interest is not payable from the date of deposit, but it is payable only after three months of filing the application. As regards the judgments relied upon by the learned counsel, I have gone through the said judgments. In the case of ONGC (supra), I find that the Hon'ble Supreme Court, under the inherent power of the apex court on the principle of restitution, granted the interest from the date of deposit. However, the statutory provision under the Customs Act i.e. Section 27 of the Customs Act, 1962 has not been considered. The entire case was decided on the principle of restitution. Therefore, I respectfully distinguish the apex co....