TaxTMI 
TaxTMI 
2026 (1) TMI 388
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....raised an objection that it was eligible for exemption from payment in terms of section 136 of the Finance Act, 2001. However, a show cause notice dated 26.08.2011 was issued to the appellant demanding the aforesaid amount with interest and proposing to impose equal amount of penalty. Thereafter, periodical show cause notices were also issued. These show cause notices were adjudicated by the Commissioner of Central Excise by orders dated 02.09.2014, 27.01.2015 and 07.10.2016 and the demand was confirmed. Aggrieved by the these orders passed by the Commissioner, the appellant as well as the department filed appeals before the Tribunal which were decided finally by order dated 09.05.2019. The said order is reproduced below: "As the issue in these four appeals arise out of common dispute on the denial of exemption from 'national calamity contingent duty' levied under section 136 of Finance Act, 2001 that was, despite exemption from basic excise duty conferred under notification no. 50/2003-CX dated 10th June 2003 available to industries in specified areas, held to be chargeable owing to apparent lack of applicability to this levy. Of the four appeals impugned before us, three....
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....on of the Tribunal, the appellant filed an application under section 11B of the Central Excise Act, 1944 [the Central Excise Act] on 26.09.2019 in Form-R for refund of the amount deposited during pendency of the litigation. In paragraph 'F' of the application, the appellant specifically stated that the claim was being filed in terms of the procedure laid down in section 11B or the Central Excise Act, 1944 read with the order dated 09.05.2019 passed by the Tribunal. Prayer was, therefore, made to refund the amount of Rs. 341,99,83,326/- deposited under protest with interest. 5. This application filed by the appellant was decided by the Assistant Commissioner by order dated 18.10.2019. The Assistant Commissioner noted that the application was filed under section 11B of the Central Excise Act and interest on this amount is contemplated under section 11BB of the Central Excise Act. The relevant portion of the order is reproduced below: "12. From the above, the party appears eligible only for refund of Rs. 341,99,83,326/- only in terms of section 11 B of the Central Excise Act, 1944. Regarding claim of interest on the above amount, I find that interest on refund is mentioned....
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.... applicable and as allowable in the decision in re Hero Motocorp Limited". 14. On going through the said orders of Hon'ble Apex Court in the case of M/s Hero Motocorp Ltd. reported in 2019(366)ELT807(SC), I find that at para 5 of the said judgment Hon'ble Apex Court has ordered as under: "That being the position, the amount paid to the Department would be refunded back within a maximum period of two months from the receipt of copy of this order". 15. From the aforesaid wordings, I find that in its judgment Hon'ble Apex Court had directed in the case of M/s Hero Motocorp Ltd. that the amount in question should be refunded within two months. However, no interest was directed to be paid on the amount to be refunded. 16. Juxtaposing the aforesaid judgments of Hon'ble CESTAT and the Hon'ble Apex Court, I find that the directives given to the adjudicating authority by the CESTAT was to grant refund of the amount to the appellant within two months from the receipt of the order. In the present case, the said F.O. dated 9.5.2019 was issued on 8.8.2019, claim was filed by the appellant on 30.08.2019 and refund was sanctioned on 18.10.20....
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....uto Ltd held that the appellant was not liable to pay Contingency Duty. When the three appeals filed by the appellant came up for hearing before the Tribunal on 09.03.2019, the order passed by the Supreme Court was noticed and, therefore, it was ordered that the appellant would be entitled to exemption under the Notification dated 10.06.2003. Regarding refund, the Tribunal left it open to the appellant to pursue the remedy provided for under section 11B of the Central Excise Act. The Proper Officer was, however, directed to examine the issue in the light of the decision of the Supreme Court in Civil Appeal No. 1600-1605 of 2018 in the matter of Hero Motorcorp Ltd. vs. Commissioner of Customs and Central Excise, Dehradun- 2019(366) E.L.T. 807 (S.C.). 14. It is not in dispute that pursuant to the order of the Tribunal, the appellant did file an application on 26.09.2019 under section 11B of the Central Excise Act for refund of the amount of Rs. 341,99,83,326/-. In paragraph 'F' of the application, the appellant clearly stated that the application was filed under section 11B of the Central Excise Act pursuant to the directions dated 09.05.2019 issued by the Tribunal. 15. This ap....