2023 (8) TMI 183

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.... sanctioned by the department. The ground taken by the department in the appeal is that the provisions of the Central Excise Act namely Sections 11B and 11BB do not applied to the refund of Cenvat Credit. It is department's case that the provision of Sections 11B and 11BB, only apply to refund of duty and not to refund Cenvat Credit under Rule 5 of Cenvat Credit Rules, 2004. It is submitted that it was also contended in the appeal of the revenue that the matter was under continuous litigation and hence refund claim sanctioned once the litigation was over, therefore no interest is payable. 2. Shri Rajesh Nathan, Learned Assistant Commissioner (AR), appearing on behalf of the revenue reiterates the grounds of appeal. 3. Shri Amal Dave, Lear....

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....k place and only sanctioned the claim in 2012. The pendency of the respondent's SCA before the Hon'ble Gujarat High Court was already infructuous once the amendment took place in 2006, merely because the SCA was pending it cannot absolve the department from the fact that the amendment, which took place in 2006 took care of the situation and the revenue was bound by such amendment. Even, otherwise there is no provision in the statue that absolves the department from interest liabilities, in such a situation the Revenue Authorities are bound to pay interest after lapse of three months, if ultimately refund is sanctioned. Therefore, on this ground also denial of interest is not tenable. He placed reliance on the following Judgments: CCE, V/s....

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....t on 13.07.2006. The revenue's contention that the Rule 5 refund is not eligible for interest as the provisions of Section 11B and 11BB are not applicable, for such refund under Rule 5 is no longer under dispute in the light of the jurisdictional High Court of Gujarat judgment in the case of Reliance Industries Ltd (Supra). Therefore, there is no doubt that the respondent are legally entitle for the interest under Section 11BB of Central Excise Act, 1984. 4.2 As regard the contention of the revenue that the matter was under continuous litigation therefore, the refund was not mature, we find that there is no force in the said contention for the reason that once the retrospective amendment was brought into effect on 13.07.2006, thereafter, t....