2019 (7) TMI 1460

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nts are 100% EOU and during the relevant period they have filed cash refund claim of accumulated CENVAT Credit in terms of Rule 5 of the CENVAT Credit Rules, 2004 from time to time. The refund claims were sanctioned by the Department with a delay of more than three months from the date of filing of the said claims. Consequently, through their letters dated 9.4.2008, they claimed interest against delay in receiving the refund from the Department. The said claim was rejected by the adjudicating authority. Aggrieved by the said order, they filed an appeal before the learned Commissioner (Appeals), who also rejected their appeals. Hence, the present appeals. 3. Learned Advocate Ms. Anjali Hirawat for the appellants submits that wherever ther....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sibility of interest for delayed cash refund of accumulated CENVAT Credit under Rule 5 of CENVAT Credit Rules, 2004 has been settled in favour of the assessee by various High Courts including jurisdictional Bombay High Court. Recently, the Hon'ble Karnataka High Court following the principles laid down by the Hon'ble Supreme Court in Ranbaxy Laboratories' case (supra) and agreeing with the judgment of Hon'ble Gujarat High Court and Hon'ble Madras High Court, has observed as follows: - "9. The rival submissions are examined in the light of the decisions by the High Court of Gujarat as well as High Court of Madras. The High Court of Gujarat in the case of Commissioner, Central Excise vs Reliance Industries Limited supra, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ted as contemplated under Section 11B of the Act. As such, the High Court of Gujarath held that when there is delay in sanctioning the refund under Rule 5 of the CENVAT Credit Rules & Notification dated 18.6.2012, the provisions of Section 11BB of the Central Excise Act would be clearly attracted. 10. The High Court of Madras, which was considering allowing interest on the delayed refund of unutilized credit under the MODVAT Credit Scheme, has also concluded that the MODVAT Credit taken was nothing but payment of duty which would be available to the assessee on the assessee paying duty on inputs at the time of clearance of final bills and therefore, there is statutory obligation on the part of the appellant - revenue under Section ....