2021 (10) TMI 847

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....e, accordingly filed the refund claim in respect of Central Excise duty paid on the raw material used in the manufacture of finished goods and exported under Rule 18 of Central Excise Rules, 2002. The claims were filed for the period from 5.4.2006 to 18.8.2006. Vide various Orders-in-Original, the claims were partly allowed. However, the refund for rebate of duty paid on the inputs was disallowed. The appeal thereof were rejected. The refund thereof were also rejected. 2. Being aggrieved civil writ petitions No. 343-344/ 2010, 390/2010 to 393/2010 and 482 /2010 to 487/2010 were filed before the Hon'ble High Court of Rajasthan. The said petitions were allowed by the Order dated 4.1.2016. Pursuant thereto the appellant filed the refund claim....

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..... It is submitted that the interest was rightly claimed but has wrongly been rejected. Learned Counsel has laid emphasis upon the decision of Hon'ble High Court of Gujarat in the case of Shri Jagdamba Polymers Ltd. vs Union of India reported at [2013 (289) ELT 429 (Guj)]. Therefore order under challenge is prayed to be set aside and appeal is prayed to be allowed. 5. While rebutting the submissions, learned Departmental Representative has mentioned that interest is not payable on the interest already sanctioned. The interest of Rs. 37,38,422/- has already been sanctioned for the amount of refund of Rs. 66,01,485/. The said amount was lying with the Department with effect from 2005-06, hence interest also was sanctioned subsequently. But no....

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....e res integra and stand settled by the Apex Court in the case of Ranbaxy Laboratories Ltd. reported in [2011 (273) ELT 3 (SC)]. Perusal of the decision makes it abundantly clear that what is payable under section 11AB is the interest on the expiry of period of three months from the date of receipt of application for the refund the amount which is still not refunded. The sanction of refund of interest on the interest amount has been allowed for this decision only for the reason that the demand has caused unnecessary delay even while sanctioning the claim of refund of duty. 7. As already been discussed, there is no delay of sanction of refund of Rs. 37,75,854/- as was paid under Rule 18A as discussed above, the said claim of Rs. 66,01,485/-.....