TaxTMI 
TaxTMI 
2019 (11) TMI 670
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....porated under the provisions of the Companies Act, 1956 and are engaged, inter alia, in the business of production and supply of gaseous Oxygen, gaseous Nitrogen and Argon. After filing the present appeal, the shareholding pattern of the appellant company underwent a change and now, the appellant is renamed as JSW Industrial Gases Pvt. Ltd. A show-cause notice was issued to the appellant and Order-in-Original dt. 11/01/2005 was passed by the Commissioner, as per which the appellant was held liable to pay excise duty of Rs. 12,62,13,125/- apart from penalty and interest. Aggrieved by the said order, appellant filed an appeal before the Tribunal along with application seeking stay of recovery of duty, interest and penalty. The Tribunal vide i....
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....ereafter the Tribunal allowed the appeal of the appellant vide Final Order dt. 07/02/2007 and the demand raised on the appellant was set aside. Subsequently, the appellant filed an application under Section 11B of the Act before the Deputy Commissioner on 26/04/2007 seeking refund of the said amount of Rs. 30 lakhs deposited by them. thereafter the Asst. Commissioner vide order dt. 24/07/2007 sanctioned the refund but refused to disburse the entire refund and instead adjusted a portion of the said amount as against a separate demand raised on the appellant vide different Orders-in-Original. The appellant did not accept the Order-in-Original and challenged the same before the Tribunal. The said Order-in-Original had not attained finality and....
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....mitted that this issue is no more res integra and has been settled by the Hon'ble Apex Court in the case of Ranbaxy Laboratories Ltd. Vs. UOI [2011 33 STT 326]. He also submitted that CBIC has also clarified that interest has to be paid automatically in case refunds are not paid within 3 months from the date of receipt of the refund application. He referred to the said Circular No.670/61/2002-CX dt. 01/10/2002. He also referred to another Circular No.572/9/2001-CX dt. 22/02/2001. He also submitted that on identical issue, Bangalore Bench of the Tribunal in the case of Voltas Ltd. Vs. CCE [2008(201) ELT 615] has held that even when a sanctioned refund is adjusted against another demand foisted on an assessee, interest is payable by the Depar....
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....t the sanctioned refund is merely belatedly paid but instead, first adjusted against some other demand and then later on disbursed to the assessee. Further we find that this issue is no more res integra and has been settled by Apex Court in the case of Ranbaxy Laboratories Ltd. wherein the Hon'ble Apex Court has held as under:- 9. .... .... ...Manifestly, interest under Section 11BB of the Act becomes payable, if on an expiry of a period of three months from the date of receipt of the application for refund, the amount claimed is still not refunded. Thus, the only interpretation of Section 11BB that can be arrived at is that interest under the said Section becomes payable on the expiry of a period of three months from the date of receipt ....