TaxTMI 
TaxTMI 
2024 (5) TMI 558
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....d the refund, partially in cash and partially in CENVAT Credit; being aggrieved by the order to the extent of grant of refund of Rs 60,29,681/- in credit and non sanction of interest as mandated in the statute, the appellant preferred an appeal before the Commissioner (Appeals), who vide the impugned order, held that refund by way of credit was incorrect and that order of Adjudicating Authority was legal in other respects. 3. Ms Anushka Rastogi, Learned Counsel appearing for the appellants submits that the impugned refund is not that of duty and thus it is not governed by the provisions of Sections 11B, 11BB etc., but is governed by Section 35FF of Central Excise Act, 1944. Thus, interest is payable from the date of such pre-deposit till the date of refund. Interest needs to be paid at the rate of 12 percent as per the ratio of the following judgments. (i) Parle Agro Pvt Ltd., [2021(5) TMI 870 - CESTAT (Allahabad)] (ii) Raghuveer Metal Industries Ltd. [2023(12) TMI 371-CESTAT(New Delhi)] (iii) Continental Engines Pvt Ltd., [2022(382) ELT 522 (Tri-Delhi)] (iv) Krishi Upaj Mandi Samithi [2020(3) TMI 260 - CESTAT (New Delhi)] 4. Shri V.R.Pavan....
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....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, on such amount from the date of payment of the amount till, the date of refund of such amount: Provided that the amount deposited under section 35F, prior to the commencement of the Finance (No. 2) Act, 2014, shall continue to be governed by the provisions of Section 35FF as it stood before the commencement of the said Act. **************** 7. I find that Section 35FF is very clear after the amendment brought vide Finance Act 2014 - interest will be paid on the pre-deposit from the date of such pre-deposit till the date of payment of refund. 8. The same principle has been laid down by the Tribunal in a number of cases. I find that principal Bench in the case of Raghuveer Metal Industries Ltd., (supra) 5.4 We observe that the amount of seized currency in the impugned refund claim was not a deposit towards duty. We observe from the order under challenge that the entire amount in Excise Appeal No. 50138-50141 of 2020 11 question is held to be an amount of pre deposit and Commissioner (Appeals) has gone a step ahea....
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....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 interest has not been prescribed, when revenue deposit is required to be refunded." The Tribunal in the said case had allowed the interest on the refund amount from the date of deposit till the date of payment thereof. 5.6 We further observe that Hon'ble Supreme Court also in the case of Commissioner of Customs (Import), Raigad vs M/s. Finacord Chemicals (P) Ltd. in Civil Appeal no. 1633-1638 of 2004 as decided on 08.04.2015 reported as 2015 (319) E.L.T. 616 (S.C.) while discussing the liability of the department to pay the interest has referred to Departments' own circular dated 02.01.2002 wherein the Board clarified that the matters of refund Excise Appeal No. 50138- 50141 of 2020 13 other than the amount of duty would not be covere....
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....of the Customs Act, 1962. Therefore, in all cases where the appellate authority has decided the matter in favour of the appellant, refund with interest should be paid to the appellant within 15 days of the receipt of the letter of the appellant seeking refund, irrespective of whether order of the appellate authority is proposed to be challenged by the Department or not. 5.3 If the Department contemplates appeal against the order of the Commissioner (A) or the order of CESTAT, which is in favour of the appellant, refund along with interest would still be payable unless such order is stayed by a competent Appellate Authority. 5.4 In the event of a remand, refund of the pre-deposit shall be payable along with interest. 5.5 In case of partial remand where a portion of the duty is confirmed, it may be ensured that the duty due to the Government on the portion of order in favour of the revenue is collected by adjusting the deposited amount along with interest. 5.6. It is reiterated that refund of pre-deposit made should not be withheld on the ground that Department is proposing to file an appeal or has filed an appeal against the order granting relief ....
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....express statutory provision. Bombay High Court also in the case of Union of India Vs. M P Desal reported as 2019 (366) ELT 251 (Bom) has held that amount seized in cash by the authorities is to be refunded along with the interest. Though in this case the rate of interest was held to be simple at the rate of 8%. However, there already has been decisions of Kerala High Court in the case of Sony Pictures Networks India Pvt. Ltd. Vs. UOI reported as 2017 (353) ELT 179 (Ker) wherein the decision of Hon'ble Apex Court in the case of Kuil Fireworks Inds. Vs. Collector reported as 1997 (95) ELT 3 (SC) is relied and it was held that rate of interest while refunding the amounts has to be 12% of the amount refunded. 5.9 We also draw our support from the decision of Hon'ble Apex Court in the case of Sandvik Asia Ltd. which is now the law of land in terms of Article 141 of the Constitution of India. The Hon'ble Apex Court, in the said case, has observed as follows: "45. The facts and the law referred to in paragraph (supra) would clearly go to show that the appellant was undisputably entitled to interest under Sections 214 and 244 of the Act as held by the various High Courts and a....
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....to be done, or money which a Court orders to be paid, by a person whose acts or omissions have caused loss or injury to another in order that thereby the person damnified may receive equal value for his loss, or be made whole in respect of his injury; the consideration or price of a privilege purchased; some thing given or obtained as an equivalent; the rendering of an equivalent in value or amount; an equivalent given for property taken or for an injury done to another; the giving back an equivalent in either money which is but the measure of value, or in actual value otherwise conferred; a recompense in value; a recompense given for a thing received recompense for the whole injury suffered; remuneration or satisfaction for injury or damage of every description; remuneration for loss of time, necessary expenditures, and for permanent disability if such be the result; remuneration for the injury directly and proximately caused by a breach of contract or duty; remuneration or wages given to an employee or officer." The Hon'ble Apex Court thus held that the assessee is entitled to claim interest from the date of payment of initial amount till the date its refund. 5.....