TaxTMI 
TaxTMI 
2026 (7) TMI 1125
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....High Court directing them to deposit the said amount in cash with the Department/competent authority and to furnish a Bank Guarantee for an amount of Rs.9.40 crores while granting stay and remanding the matter back to the Tribunal for deciding the appeal on the disputed issue. Subsequently, vide the Final Order dated 16.04.2015, Coordinate Bench of the Tribunal had decided the case in favour of the appellants, by holding that the process undertaken by the appellants in respect of Cocoa butter received from their Jammu factory to their factory situated in MIDC-Taloja, Panvel amounts to manufacture in terms of the Central Excise statute and they are rightly eligible to take CENVAT credit of central excise duty paid on inputs received from their Jammu factory for manufacture of final products and are also eligible for rebate of central excise duty paid, if any, on export of final products. Pursuant to this order of the Tribunal, the Dy. Commissioner of Central Excise, Kalamboli Division, Raigad Commissionerate sanctioned refund of Rs.4,27,74,795/-, which included interest @ 6% amounting to Rs.27,74,795/-, besides the cash deposit of Rs.4 crores made at behest of the order of the Hon&#....
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....;s Order. The amended Section 35FF is effective only from 6.8.2014 (the date on which the Finance Act, 2014 commenced). The said Section was not given a retrospective effect by the Legislature. Giving effect to this Section 35FF which is effective from 6.8.14 by the Adjudicating Authority is a clear case of misunderstanding the legal provisions. In this case, the Adjudicating Authority sanctioned the refund on 18.6.15, i.e. well within the period of 3 months as stipulated in the erstwhile Section 35FF which is applicable in this case. The Adjudicating Authority is not legally required to sanction any interest in this matter. Sanctioning the interest in this case is not legal and correct. Sanctioning the interest by the Adjudicating Authority is without any authority of law. Accordingly, the Order passed by the Adjudicating Authority sanctioning the interest is liable to be set aside. 8. In view of above, the Order-in-Original sanctioning interest portion alone is set aside. The Respondent is ordered to repay the interest amount of Rs. 27,74,795/-taken along with interest to the department without delay. Order-in-Original is modified to that extent." 6. The issue for con....
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....cial amendment of Finance (No. 2) Bill, 2014 introduced as a part of Union Budget, 2014. It is also noticed that the original amendments to the Central Excise Act, 1944 through the Finance Bill, 2014 vide various clauses 89 to 104 had not contained any proposal for amendment of Section 35FF ibid. However, amendment to Section 35FF was introduced as Section 106 of the Finance (No. 2) Act, 2014 by way of substitution of a new section instead of the earlier legal provision that existed in the Central Excise statute. This provision relates to payment of interest on delayed refund of amount deposited under Section 35F ibid. The amended legal provision under Section 35FF ibid effective from 06.08.2014 provided for payment of interest at prescribed rate fixed by the Government consequent to any order passed by the appellate authority making a person eligible for refund of deposit made under Section 35F for a period commencing from the date of payment of amount till the date of refund of such amount. The provision that existed prior to 06.08.2014 provided for similar provision involving payment of interest consequent upon the order of the appellate authority, whereby a person is eligible f....
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....deposited the amount of Rs. 4 crores on 21.04.2014, i.e., prior to 06.08.2024. Therefore, the unamended provision of Section 35FF ibid alone will be applicable to the present case. Further, the facts are not under dispute that the case was decided in the appellants' favour in the Final Order dated 16.04.2014 passed by the Tribunal and the refund of pre-deposit was sanctioned by the concerned authority on 18.06.2015 i.e., within a period of three months stipulated in erstwhile Section 35FF ibid and in terms of proviso clause of the amended Section 35FF ibid. Therefore, I am of the view that payment of interest does not arise in the present case, in terms of the applicable legal provisions of Section 35FF ibid. 9. In view of the aforesaid discussions, I am of the view that the impugned order dated 02.03.2016 upholding the sanction of refund, but denying the payment of interest and ordering its repayment does not require any interference. Accordingly, the impugned order is sustained and appeal filed by the appellants is dismissed. (Order pronounced in open court on 16.07.2026) ============= Document 1 रजिसà¥à¤Ÿà¥à¤°à¥€ संà¥....
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....me 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.". Amendments to the Central Excise Act, 1944 in Finance Bill (No.2) (as proposed, as amended by Finance (No.2) Act, 2014 BILL No. 35 OF 2014 THE FINANCE (No. 2) BILL, 2014 (AS INTRODUCED IN LOK SABHA) THE FINANCE (No.2) BILL, 2014 ARRANGEMENT OF CLAUSES CHAPTER I PRELIMINARY CLAUSES 1. Short title and commencement. xxx xxx Excise xxx XXX 88. Substitution of new authorities. 89. Amendment of section 2. 90. Insertion of new sections 15A and 15B. 91. Amendment of section 31. 92. Amendment of section 32. 93. Amendment of section 32E. 94. Amendment of section 32-O. 95. Amendment of section 35B. 96. Amendment of section 35C. 97. Amendment of section 35E. 98. Substitution of new section for section 35F. 99. Amendment....