TaxTMI 
TaxTMI 
2023 (5) TMI 293
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....as paid central excise duty on the intermediate product during the period August 1979 to March 1987 under protest. The issue involved in the case was finally decided by Hon'ble Supreme Court in the case of Hindustan Ferrodo Ltd. [1997 (89) ELT 16 (SC)] holding that excise duty is not payable on intermediate products arising during the manufacturing process as the same are not marketable. Accordingly respondent filed refund applications dated 23.06.1997 for Rs.3,31,806/- and Rs.4,55,347/- and another refund claim dated 03.07.1997 for Rs.28,49,762/-. 2.2 These refund applications were rejected by the refund sanctioning authority and appellate Commissioner on the ground of failure to produce the duty paying documents. Aggrieved respondent preferred an appeal before the Tribunal and the Tribunal vide order dated 29.12.2004 allowed the appeal in favour of the respondent for refund of the amount along with interest. In de novo process, the refund was again rejected on the ground of unjust enrichment. 2.3 Aggrieved respondent again approached CESTAT and CESTAT had vide order dated 21.01.2014 allowed the appeal of the respondent holding that unjust enrichment would not be applicable in t....
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....ied upon the following decisions in support of the impugned order:- Ucal Fuel Systems Ltd. [2014 (306) ELT 26 (Mad.)] Sandvik Asia Ltd. [2006 (196) ELT 257 (SC)] Pricol Ltd. [2015 (320) ELT 703 (Mad.)] Omjai Bhavani Silk Mills (P) Ltd. [2009 (243) ELT 560 (Tri.- Bang.)] Parle Agro Pvt. Ltd. [2022 (380) ELT 219 (Tri.-All.)] Shahi Exports Ltd. [2022 (58) GSTL 367 (Tri.-Chan.)]. 4.1 We have considered the impugned order along with the submissions made in appeal and during the course of arguments. 4.2 Section 11BB of the Central Excise Act inserted in the statute with effect from 26.05.1995 by Finance Act, 1995 (22 of 1995) reads as follows:- "11BB. Interest on delayed refunds. - If any duty ordered to be refunded under sub-section (2) of section 11B to any applicant is not refunded within three months from the date of receipt of application under sub-section (1) of that section, there shall be paid to that applicant interest at such rate, [not below five per cent] and not exceeding thirty per cent per annum as is for the time being fixed [by the Central Government, by Notification in the Official Gazette], on such duty from the date immediately after the expiry o....
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....be deemed to be an order made under sub-section (2) of Section 11B of the Act. It is clear that the Explanation has nothing to do with the postponement of the date from which interest becomes payable under Section 11BB of the Act. Manifestly, interest under Section 11BB of the Act becomes payable, if on an expiry of a period of three months from the date of receipt of the application for refund, the amount claimed is still not refunded. Thus, the only interpretation of Section 11BB that can be arrived at is that interest under the said Section becomes payable on the expiry of a period of three months from the date of receipt of the application under sub-section (1) of Section 11B of the Act and that the said Explanation does not have any bearing or connection with the date from which interest under Section 11BB of the Act becomes payable. 10. It is a well settled proposition of law that a fiscal legislation has to be construed strictly and one has to look merely at what is said in the relevant provision; there is nothing to be read in; nothing to be implied and there is no room for any intendment. [See: Cape Brandy Syndicate v. Inland Revenue Commissioners, [1921] 1 K.B. 64 and ....
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....e authority for grant of interest. Simultaneously, Board would like to draw attention to Circular No. 398/31/98-CX., dated 2-6-98 [1998 (100) E.L.T. T16] wherein Board has directed that responsibility should be fixed for not disposing of the refund/rebate claims within three months from the date of receipt of application. Accordingly, jurisdictional Commissioners may devise a suitable monitoring mechanism to ensure timely disposal of refund/rebate claims. Whereas all necessary action should be taken to ensure that no interest liability is attracted, should the liability arise, the legal provision for the payment of interest should be scrupulously followed." ( Emphasis supplied ) 12. Thus, ever since Section 11BB was inserted in the Act with effect from 26th May 1995, the department has maintained a consistent stand about its interpretation. Explaining the intent, import and the manner in which it is to be implemented, the Circulars clearly state that the relevant date in this regard is the expiry of three months from the date of receipt of the application under Section 11B(1) of the Act. 13. We, thus find substance in the contention of learned counsel for the assessee that....
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....ove analysis, our answer to the question formulated in para (1) supra is that the liability of the revenue to pay interest under Section 11BB of the Act commences from the date of expiry of three months from the date of receipt of application for refund under Section 11B(1) of the Act and not on the expiry of the said period from the date on which order of refund is made." 4.5 In the case of Surajbhan Synthetics (P) Ltd., similar view has been expressed by the Hon'ble Apex Court. 4.6 During the course of argument, learned counsel relied upon the decision in the case of Sandvik Asia Ltd. [2006 (196) ELT 257 (SC)]. On going through the judgment we find that the issue under consideration before the Hon'ble Apex Court as per para 16 was in respect of interpretation of Sections 237, 240, 243 and 244 of the Income Tax Act, 1961. The said sections are reproduced below:- "237. Refunds. If any person satisfies the Income-tax Officer that the amount of tax paid by him or on his behalf or treated as paid by him or on his behalf for any assessment year exceeds the amount with which he is properly chargeable under this Act for that year, he shall be entitled to a refund of the excess. 2....
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....see in pursuance of an order referred to in section 240 and the Income-tax Officer does not grant the refund within a period of [three months from the end of the month in which such order is passed], the Central Government shall pay to the assessee simple interest at [twelve] per cent per annum on the amount of refund due from the date immediately following the expiry of the period of [three] months aforesaid to the date on which the refund is granted. (1A) Where the whole or any part of the refund referred to in sub-section (1) is due to the assessee, as a result of any amount having been paid by him after the 31st day of March, 1975, in pursuance of any order of assessment or penalty and such amount or any part thereof having been found in appear or other proceeding under this Act to be in excess of the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this Act, the Central Government shall pay to such assessee simple interest at the rate specified in sub-section (1) on the amount so found to be in excess from the date on which such amount was paid to the date on which the refund is granted : Provided that, where the amount so found to....