TaxTMI 
TaxTMI 
2019 (1) TMI 819
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....hey are aggrieved by the denial of interest under section 11BB of Central Excise Act, 1944. The appellant had sought refund of the debited amount and interest paid, vide application dated 15th February 2014, following which notice was issued to them proposing that the claim be rejected as pre-mature. However, consequent upon certain decisions that settled the dispute over liability, the refund was finally sanctioned on 24th March 2017, and their claim was that delayed response sufficed to entitle them to interest. In order-in-appeal no. NSK/CEX/000/APPL/254/17-18 dated 26th February 2018, Commissioner of Central Excise & GST (Appeals), Nasik allowed interest on the filing of the refund claim. The rejection of claim for interest on the debit....
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....he decision of the Tribunal in M/s Trivedi Engineering & Industries Ltd vs. Commissioner of Central Excise, Lucknow, [2017 (11) TMI 599-CESTAT Allahabad] which according to him are identical circumstances and interest has been ordered to be paid.' 4. According to Learned Authorized Representative, plain reading of section 11B of Central Excise Act, 1944 makes it applicable only to duty and that, just as no interest is leviable on delayed discharge of liability under rule 6 of CENVAT Credit Rules 2004, the privilege of interest on restoration of credit does not arise. He also contends that the CENVAT credit, in the present instance, had been utilized in relation to provision of service whereas the refund referred to by Learned Counsel is r....
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.... brought into play for this limited purpose of authorizing the restoration. Mere reference in the provisions of law pertaining to refund will not enable such debit entries to be adorned with the mantle of duty. 7. It is amply clear from section 11B of Central Excise Act, 1944 that the provisions were legislated for grant of refund of incorrectly debited entries in the account current. Consequently, the interest liability under section 11BB of Central Excise Act, 1944 will arise only on refund of duty paid by such debits in account current. Further, Central Excise Act, 1944 crystalizes liability of duty on excisable goods whereas liability under rule 6 of CENVAT Credit Rules, 2004 devolves on those that were not excisable. Therefore, the me....