SC: Suit Alleging Coercion or Undue Influence Cannot be Rejected under Order VII Rule 11 CPC  ||  Cal HC: Once ED Attachment is Confirmed, Challenge Becomes Academic; PMLA Remedy Must be Pursued  ||  MP HC: Pen-Drive Evidence Cannot be Introduced At a Late Trial Stage Without Proof or Relevance  ||  Calcutta HC: Employee Can't be Stopped From Joining Rival Post-Resignation; Trade Secrets Protected  ||  Calcutta HC: Banks Must Provide Forensic Audit Report Before Calling an Account Fraudulent  ||  Del HC: Woman Cannot Demand Re-Entry to Abandoned Matrimonial Home if Alternate Accommodation Exists  ||  Calcutta HC: Land Acquisition For Industrial Park is Public Purpose; Leasing to Industry is Valid  ||  Patna HC: PwD Recruitment Must Comply With RPwD Act; Executive Resolutions Cannot Override the Law  ||  Madras HC: Individuals Facing Criminal Trial Must Get Court Permission Even to Renew Passports  ||  Calcutta HC: Demolition Orders Cannot be Challenged under Article 226 if a Statutory Appeal Exists    

Atmiya Engineering And Plastics vs. C.C.E. & S.T. Vadodara-I - (Customs, Excise and Service Tax Appellate Tribunal) (05 Apr 2022)

Date of filing of refund application needs to be taken for grant of interest

MANU/CS/0077/2022

Excise

The issue involved is whether the Appellant is entitled for interest in respect of the refund claim already granted. The brief facts of the case are that, the Appellant has claimed remission of duty in respect of goods destroyed. In the said process, they were asked to reverse the Cenvat Credit of inputs contained in the destroyed goods. Accordingly, they reversed the credit some part of it from PLA and some part of it from Cenvat account, thereafter, they claimed refund of the said reversal on the belief they were not supposed to reverse the credit. The Appellant filed a refund claim which was rejected and subsequently Commissioner (Appeals) allowed the refund claim.

Thereafter, the appellant approached the department by way of a letter with reference to their earlier refund claim, the department has sanctioned the refund claim on 14th June, 2018. The appellant being of bonafide belief that they are entitled for the interest from the three months after the filing of refund claim, the claimed the interest, which was rejected on the ground that since, the refund claim was granted within 3 months from the date of the Commissioner (Appeals) order, no interest is payable. Being aggrieved by the rejection of claim of interest, the appellant filed an appeal before the Commissioner (Appeals). Learned Commissioner (Appeals) also concurred with the view of original authority and dismissed the appeal. Therefore, the present appeal filed by the Appellant.

There is no dispute in the fact that, the Appellant had filed a refund claim on 11th June, 2018 which was though rejected by the original authority but allowed by the Commissioner (Appeals). If there is any delay in sanction of the refund claim from the date of filing application, the appellant is entitled for the interest from the date of filing of refund claim till the date of sanction.

The Revenue's contention is that they have granted the refund within three months form the date of Commissioner (Appeals) order. Once the Commissioner (Appeals) has allowed the refund, the appellant was entitled for the refund right from the date of filing of the application. Therefore, for the purpose of interest, it is not the date of Commissioner (Appeals) order, but it is the date of filing of refund application needs to be taken. Accordingly, the Appellant is entitled for the interest on the refund. Hence, the impugned order is set aside. Appeal allowed.

Tags : REFUND   INTEREST   GRANT  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved