TaxTMI 
TaxTMI 
2003 (10) TMI 119
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce at Okhla Industrial Estate Phase-II, New Delhi. The officers of the Directorate General of Anti-Evasion searched their manufacturing units and other offices on 7-10-97. During the course of investigation, M/s. Padmini Polymers Ltd. deposited Rs. 50 lakhs in Punjab National Bank, Okhla Industrial Estate Phase-II, New Delhi; that subsequently, a show cause notice, demanding duty of Rs. 7,69,90,751/-, was issued to them which was dropped by the Commissioner (Adjudication), Delhi as far as the demand of duty was concerned. Subsequently, the assessee filed a refund claim for Rs. 50 lakhs with the Deputy Commissioner, Division-II, Ghaziabad, within whose jurisdiction, their Sahibabad unit falls. The Deputy Commissioner, in the Memorandum dated....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eerut Commissionerate. Against this finding of the Commissioner (Appeals), the Revenue has come in appeal before us. 3. The Commissioner (Appeals), however, in the impugned order, did not allow the interest to the assessee under Section 11BB of the Central Excise Act holding that the interest on delayed refund occurs only if any duty ordered to be refunded under Section 11B(2) has not been paid within three months after such valid refund order and as no refund order has been passed, claim of refund is not acceptable. M/s. Padmini Polymers have come in appeal against disallowance of interest. 4. We heard Mrs. Charul Baranwal, learned SDR in respect of appeal filed by the Revenue against the sanction of refund by the Commissioner (Appea....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt deposited during the course of investigation. 6. We have considered the submissions of both the sides. Section 11B of the Central Excise Act clearly provides that any person claiming the refund of duty of excise, may make an application for refund of such duty to the Assistant/Deputy Commissioner of Central Excise before the expiry of six months from the relevant date in such form and manner as may be prescribed. It is not in dispute that M/s. Padmini Polymers have filed their refund claim in the prescribed form as per the provisions of Rule 173S of the Central Excise Rules, which has not been disputed by the Revenue that Rs. 50 lakhs were deposited by them. This fact has been confirmed by the Assistant Chief Accounts Officer of Delhi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....m the date of receipt of his application, interest has to be paid to the applicant on such duty from the date immediately after the expiry of three months from the date of receipt of application till the date of refund of duty; that the refund claim was filed on 1-11-2000 before the Deputy Commissioner, Ghaziabad and the interest is payable to them after three months from the date of claiming the refund till the date of refund. He referred to Board's Circular No. 130/41/95-CX., dated 30-5-95, wherein it has been clarified by the Ministry that with the enactment of the Finance Act, 1995, the Department has become liable to pay interest at the prescribed rate in case of various types of refund which are not processed within three months from ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hin three months of their filing the refund application. The refund has been initially rejected by the Dy. Commissioner, which has subsequently been sanctioned by the Commissioner (Appeals) in the impugned order. The appeal, filed by the Revenue against the sanctioning of refund by the Commissioner (Appeals), has just been rejected by us. The phrase "if any duty ordered to be refunded under sub-section (2) of Section 11B to any applicant", will cover the sanction of the refund by any authority, either the original authority, to whom the refund claim was filed with, or the Appellate Authority. Once, the duty is ordered to be refunded, the time-limit for payment of interest is computed from the date of receipt of the application under sub-sec....