2005 (7) TMI 138

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....unts in terms of Rule 5 of the Cenvat Credit Rules, 2001/2002. These claims were sanctioned to them, albeit belatedly. As the amounts refunded by the department were received by the appellants beyond the period of three months prescribed under sub-section 1 of Section 11BB of the Central Excise Act, they claimed interest on these amounts for the period of delay. These claims were rejected by the original authority and the first appellate authority, both of which held that no interest was admissible to any amount of Modvat credit refunded under Rule 5 ibid. Hence these appeals. 2. After hearing both sides, I find that the question to be decided upon is whether the provisions of Section 11BB are applicable to a claim of interest on an amou....

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.... provisions of Section 11B have been made applicable to a claim for refund of input duty credit filed under Rule 5. In all other respects, according to SDR, Section 11B stands excluded from the area occupied by refund claims under Rule 5 and, consequently, the interest provisions of Section 11BB are inapplicable to such refunds. 3. After giving careful consideration to the submissions, I find that the refund claims in question were allowed under Rule 5. What was prescribed by Notification No. 11/2002-C.E. (N.T.) issued under Rule 5 was the procedure for the filing and processing of refund claims under the said Rule. Once such a claim is allowed by the authority, the procedure laid down under the Notification stands exhausted. The questio....