TaxTMI 
TaxTMI 
2007 (8) TMI 349
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....ermination of this Court :- "Whether the refund claim of excess amount of interest paid by the party under Section 11B of the Central Excise Act, 1944, is legally correct?" 2.Brief facts of the case necessary for disposal of the controversy raised are that the assessee-respondent M/s Northern Minerals Ltd. are engaged in the manufacture of pesticides and insecticides falling under Chapter Heading No. 3801.10 and 3808.20 respectively of the Central Excise Tariff Act, 1985 (for brevity, 'the Tariff Act'). It filed refund claim of Rs. 3,26,027/- under Section 11B of the Act on the ground that they had paid excess amount of interest @ 24% per annum instead of 15% per annum on the differential duty payable during the year 2001-2002. The adjudi....
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....mandates for recovery of interest at the rate of 15% from 13-5-2002 the department could not have demanded the excess interest from him. I find force in the appellants contention that if the Statue itself says that the interest to be charged on the duty payable/short paid by the assessee is 15% then the department cannot sit with excess amount of interest paid by the appellants may be due to oversight or due to mistake." 5.The contention of the department that Section 11B of the Act does not contemplate refund of interest has been rejected by the Tribunal. 6.After hearing learned counsel at a considerable length we find that the instant petition is wholly without any merit. It would be appropriate to make a reference to the relevant provi....
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.... other evidence which may establish that amount of duty of excise in relation to which such refund is claimed was collected from or paid by him and that incidence of such duty had not been passed on by him to any other person. 8.It is also considered appropriate to make a reference to Section 11AB of the Act and the same reads as under :- "11AB. Interest on delayed payment of duty. - Where any duty of excise has not been levied(1) or paid or has been short-levied or short-paid or erroneously refunded, the person who is liable to pay duty as determined under sub-section (2), or has paid the duty under sub-section 2(B), of section 11A, shall, in addition to the duty, be liable to pay interest at such rate not below ten per cent and not exce....
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....y the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, the interest shall be payable on such increased or further increased amount of duty." 9.A perusal of the aforementioned provision shows that where an amount of excise duty has not been levied or paid or short levied or short paid or erroneously refunded then such a person who is liable to pay the duty, is liable in addition to duty to pay, interest at the specified rates. Similar provision has been made for payment of interest on delayed amount of refund as is evident from the perusal of Section 11BB of the Act. The aforementioned provision reads as under :- "11BB. Interest on delayed refunds. - If any duty ordered to be refunded under sub-section (2) ....