2018 (6) TMI 44

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.... which has been sanctioned. However, no interest 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&S....

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....ation order, the appellant had deposited the total service tax, 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 tha....

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....ed from the date of deposit. This Tribunal, being a creature under the 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 prin....

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.... Tribunal in the case of Indian Thermoplastics (P) Ltd. (supra) wherein the Larger Bench has held that the relevant date for completion of period for grant of interest is from the date of expiry of three months from the date of receipt of final order of the Tribunal till the date of payment. Therefore, the interest is not payable from the date of deposit. I have also read the provision of Section 11B(5)(B)(ec) which reads as under:-  "(ec) in case where the duty becomes refundable as a consequence of judgment, decree, order or direction of appellate authority, Appellate Tribunal or any court, the date of such judgment, decree, order or direction." The relevant date means in case where the duty becomes refundable as a consequence ....