2007 (10) TMI 240

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....h was due to him as a consequential relief by way of order of the Tribunal. The appellant filed a refund claim on 23/06/97 disputing the amount which has been paid by him on the insistence of the Central Excise Officers. The issue was finally settled in favour of the appellants by the order of the Tribunal dated 23/08/2005. Lower authorities allowed the refund claim of Rs.5,91,888/- but did not grant any interest of the said amount. The appellant filed appeal against the said order for rejection of interest. The Commissioner (Appeal) was also held against the appellant. 3. The Ld. Advocate submits that the issue squarely covered by the decision of the Larger Bench of the Tribunal in the case Jayanta Glass Ltd., Vs. CCE, Kolkata, as repor....

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.... the issue was under investigation followed by process of adjudication. Thus the claim was filed without any valid ground for doing so and it was rightly not entertained as being premature. Since the claim itself was not maintainable at the point of time of its filing, the date of filing of that claim can not be taken as the date of filing of a claim which subsequently arose as a consequence of Hon'ble CESTAT's judgement dated 23/08/2005. Any refund claim on this issue filed before 23/08/05 is an non-est in the eye of law and cannot be taken into consideration for any purpose whatsoever. It has to be borne in mind that the adjudication proceedings were not on the rejection of the refund claim, but on the demand of differential duty and the ....

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....fully justified in contending that interest due to it is to be calculated on the basis of its application filed on 5/2/98.  The decision of the Kolkata High Court relied on behalf of the respondent has no application to the present situation. That was a case of refund of pre-deposit. The Hon'ble High Court has held that the liability to pay interest would arise only after decision is taken by the final authority. In the light of the above there will be a direction to the respondent to calculate the interest in accordance with law for the relevant period, taking into consideration refund application filed by the applicant on 5/2/98. The payment of interest shall be made within a period of one month and compliance to be reported to th....