2020 (2) TMI 604

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....ining to 2009 and the issue is in a narrow compass, the matter has been taken up for decision even in the absence of the appellant. 3. Heard the Ld.D.R. for the Revenue and perused the records. 4. The appellant had been sanctioned refund as well as interest on the refund as applicable under Section 11BB of the Central Excise Act, 1944. The appellant also sought an interest on the interest, which has been rejected by the first appellate authority in the impugned order. The relevant portion of the impugned order at Page 4 in Para 4, is reproduced below : "4. I have gone through the materials on record, the appeal petition and the records of personal hearing. The Commissioner (Appeals) in his Order-in-Appeal dated 25.03.2008 has....

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.... to lower authority to refund the interest. (iv) The lower authority passed by the Assistant Commissioner of Central Excise, Taratala-IV Division vide his Order-in-Original No.R- 72/AC/Tara-IV/Kol-VI/2008 dated 11.06.2008 refunded the interest of Rs. 1,27,340/- only but not the interest on interest. (v) We have also filed the appeal before the Commissioner of Central Excise, Appeal Kolkata II for payment of interest on interest, who without going through the various judgements of CESTAT dismissed the appeal vide his order No.04/Kol.VI/2009 dated 27.08.2009. (vi) For that further and in any event and without prejudice to the aforesaid, the Commissioner of Central Excise, Appeal, Kolkata II failed to appreciate that....

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....this Court was considering the issue whether an assessee who is made to wait for refund of interest for decades be compensated for the great prejudice caused to it due to the delay in its payment after the lapse of statutory period. In the facts of that case, this Court had come to the conclusion that there was an inordinate delay on the part of the Revenue in refunding certain amount which included the statutory interest and therefore, directed the Revenue to pay compensation for the same not an interest on interest. 8. Further it is brought to our notice that the Legislature by the Act No. 4 of 1988 (w.e.f. 1-4-1989) has inserted Section 244A to the Act which provides for interest on refunds under various contingencies. We clarif....