2004 (1) TMI 192

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.... of the ld. Commissioner (Appeals). The respondents were sanctioned refund of Rs. 7,01,219/- in RG 23A Part-II. The request for interest was declined by saying that the provision of payment of interest under Section 11BB of the Central Excises and Salt Act, 1944 are not attracted since it is not a cash refund and the refund is through adjustment in Modvat credit only. Against the order rejecting t....

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....pplication has been filed before the introduction of this Section i.e. 26-5-95, the provisions of this section would be applicable after expiry of three months from this date i.e. 26-8-95 and the appellants are eligible for interest as admissible under the law from 26-8-95." 2. Against this finding the revenue appeal mainly claims that the refundability of the amount itself is in dispute, the m....

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....ty. Having not challenged this order, the said order granting refund becomes final. In the circumstances, what remains is the fact that such a refund was granted after the expiry of interest free period of three months as held by the ld. Commissioner. Consequence of such a delay is that the department is liable to pay interest under Section 11BB. During the hearing, the ld. DR strenuously argued t....