TaxTMI 
TaxTMI 
2022 (4) TMI 560
X X X X Extracts X X X X
X X X X Extracts X X X X
....pellant had succeeded in its appeal before this Tribunal vide FO 75527/2020 dated 22/10/2020 which had resulted in refund of Rs. 78,16,265/- which was deposited by the Appellant during the investigation proceedings before the issuance of the Show Cause Notice on various dates i.e. 04/03/2012, 30/06/2012 and 02/02/2012. 3. Post the above order dated 22/10/2020, the Appellant filed a letter seeking refund of the amount along with interest from the date of making payment of amount till the date of refund. The Adjudicating authority vide Order-in-Original (OIO) dated 24/03/2021 allowed the refund of the amount, however no interest was paid by the Adjudicating authority on the ground that the payment of interest under section 35FF is applicable to delayed refund of amount deposited under proviso to section 35F of the Central Excise Act, 1944. 4. Being aggrieved by the said OIO dated 24/03/2021, the Appellant preferred an Appeal before the First Appellate Authority. The Ld.Commissioner (Appeals) vide Order dated 02/09/2021 allowed payment of interest for 35 days of delay but not from the date of payment as sought by the Appellant. Hence the present appeal. 5. Shri Ankit Kanodia,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rious provisions in this regard. To quote: "24. Excise Appeal No. 70628 of 2019 has been filed by the appellant for a relief that interest at the rate of 12% should be granted to the appellant from the date of deposit of the amount instead of 6%, as ordered by the Commissioner (Appeals). In this connection, learned counsel for the appellant has placed reliance upon the following decisions: (i) Sandvik Asia Ltd. vs. Commissioner of Income Tax-I, Pune [2006 (196) E.L.T. 257 (S.C.)]. (ii) Pace Marketing Specialities vs. Commissioner of Central Excise [2012 (27) S.T.R. 420 (All.)]. (iii) Ebiz. Com Pvt. Ltd. vs. Commissioner of Central Excise, Customs & S.T. [2017 (49) S.T.R. 389 (All.)] (iv) Riba Textiles Ltd Village Chidana, Tehsil Gohana Dist Sonepat, Haryana vs. Commissioner of Central Excise and Service Tax Panchkula [2020-TIOL-932-CESTAT-CHD]. 25. Before adverting to the aforesaid decisions relied upon by the learned counsel for the appellant, it would be appropriate to refer to the provisions contained in the Central Excise Act 1944,relating to refund. 26. Section 11A of the Excise Act relates to recovery of duties no....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cted in excess of the duty from the buyer of such goods, the person who is liable to pay such amount shall, in addition to the amount, be liable to pay interest at such rate not below ten per cent., and not exceeding thirty-six per cent per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette. 33. There is no provision in the Excise Act, which deals with refund of revenue deposit and so rate of interest has not been prescribed, when revenue deposit is required to be refunded. 34. To be able to have some guidance regarding the rate of interest in case revenue deposit has to be refunded, the aid of the interest provisions under section 11AA (which deals with interest on delayed payment of duty), section 11BB (which deals with interest on delayed refunds under section 11B(2) and section 11DD (which deals with interest on the amount collected in excess of the duty) can be taken. 35. The Notification issued under section 11AA of the Excise Act provides interest at the rate of fifteen per annum. The notification is reproduced below: Notification No. 15/2016-C.E. (N.T.), dated 1-3-2016 Notification Under ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ification No. 6/2011-C.E. (N.T.), dated 1-3-2011 Notification Under Section 11AB Rate of interest on delayed payment of duty. - In exercise of the powers conferred by section 11AB 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. 66/2003-Central Excise (N.T.), dated the 12th September, 2003 [GSR (E), dated the 12th September, 2003], except as respects things done or omitted to be done before such supersession, the Central Government hereby fixes the rate of interest at eighteen percent per annum for the purpose of the said section. This notification shall come into force from the 1st day of April, 2011." 39. In this connection reference can also made to the decisions of the Allahabad High Court in Pace Marketing Specialities and Ebiz. Com Private Limited, wherein after making reference to the decision of the Supreme Court in Sandvik Asia Ltd., the High Court granted interest at the rate of 12% per annum in matters relating to refund of amount deposited during investigation and adjudication. 40. In Riba Textiles, the Tribunal also....