2022 (3) TMI 801

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....s below granted interest @6% in terms of section 11BB of the Act. The appellants aggrieved that the interest provided @6% instead of @ 12% has been examined by this Tribunal in the earlier proceedings, the appellant claimed the differential interest which was rejected by the authorities below. Against, the said order, the appellants are before me. 3. Ld. Chartered Accountant for the appellants has relied on the decision of Allahabad Bench of this Tribunal in the case of M/s. Parle Agro Pvt. Ltd. vide Final Order No.70180-70181/2021 dated 25.5.2021. 4. On the other hand, ld.AR opposed the contention of the Chartered Accountant and submits as under: - 4.1 That the basic and core issue in these appeals is that neither the Appellants contested the statutory provisions of Section 11B of the Act under which refund was sanctioned to them nor the statutory provisions of Section 11BB of the Act under which interest @6% was granted as per statutory provisions, which is clear admission and acceptance of refund under Section 11B and interest under Section 11BB of the Act and when these facts are on record and not disputed then the Appellants have no legal right to claim interest @12% withou....

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.... in exercise of their writ jurisdiction will not constitute a ratio creating power of the Tribunal or revenue authorities to award interest contrary to provisions of Section 11BB on the delayed refunds....." ii) On the issue of interest on refund sanctioned the Division Bench of Hon'ble CESTAT, Chennai in case of Hindustan Photo Films Manufacturing Co. Ltd. v. CCE Salem - 2018 (364) ELT 471 (Tri.Chennai) - while discussing the judgements titled as Commissioner of Income Tax v. Gujrat Fluoro Chemicals - 2013 (296) ELT 433 (S.C.) - and Sandvik Asia Ltd. v. Commissioner - 2006 (196) ELT 257 (S.C.) - has held as under in Para 6 (relevant portion):- "6. ............ we note that the appellant did not quote any statutory provision under the Customs Act, 1962 to support their claim. Any claim of amount from the Government can be disbursed only based on a statutory provision. The Tribunal cannot pass an order for general compensation, the facts of the present case. We note that in Gujarat Fluoro Chemicals (supra), the Hon'ble Supreme Court, examining similar provisions under the Income Tax, held that the payment ordered in Sandvik case (supra) cannot be considered as interest on intere....

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.... words in a statute are clear, plain and unambiguous and only one meaning can be inferred, the Courts are bound to give effect to the said meaning irrespective of consequences. If the words in the statute are plain and unambiguous, it becomes necessary to expound those words in their natural and ordinary sense. The words used declare the intention of the Legislature. In Kanai Lal Sur v. ParamnidhiSadhukhan, AIR 1957 SC 907, it was held that if the words used are capable of one construction only then it would not be open to the Courts to adopt any other hypothetical construction on the ground that such construction is more consistent with the alleged object and policy of the Act." In view of above facts, statutory provisions and relied upon decisions, the appeals merit dismissal. 5. Heard the parties and considered their oral/written submissions. 6. In the earlier round of litigation, this Tribunal has entertained the issue "whether the appellant are entitled to claim interest @ 12% of the deposit made during the period of investigation till its realization." The said issue was allowed in favour of the appellants, inadvertently the rate of interest could not be quoted in the said....

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....3 Notification Under Section 11BB Interest @ 6% per annum on delayed refunds. - In exercise of the powers conferred by section 11BB of the Central Excise Act, 1944 (1 of 1944) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 17/2002-Central Excise (N.T.), dated the 13th May, 2002 [GSR 353(E), dated the 13th May, 2002], except as respect things done or omitted to be done before such supersession, the Central Government hereby fixes the rate of interest at six per cent per annum for the purpose of the said section. 37. The Notification issued under section 11DD provides interest @ of 15% per annum on the amount collected in excess of duty. It is reproduced below: M.F. (D.R.) Notification No. 68/2003-C.E. (N.T.), dated 12-9-2003 Notification Under Section 11DD Interest @ 15% per annum on amounts collected in excess of duty. - In exercise of the powers conferred by section 11DD of the Central Excise Act, 1944 (1 of 1944) the Central Government hereby fixes the rate of interest at Fifteen percent per annum for the purpose of the said section. 38. It would also be to pertain to refer to the Notification ....