RISHABH VELVELEEN LTD Vs. CESTAT

JUDGEMENT

(1.) THESE two appeals have raised similar questions of law based on similar facts and decided by a common judgment of the Appellate Tribunal. We are, accordingly, deciding these two appeals together. The facts, to which there appears to be no dispute, are that the appellant used excisable goods as inputs and, accordingly, became entitled to Cenvat credit. However, appellant was not allowed to take advantage of this credit by adjusting the same with the excise liability on the goods produced by it. This happened by reasons of certain notifications issued by the Government. Ultimately, it was decided that those notifications do not stand in the way of utilizing these credits. By the time the same was decided, the goods manufactured and sold by the appellant became exempted from the levy of excise duty. Accordingly, question of adjusting such Cenvat credit with the excise duty payable by the appellant did not arise. Appellant, accordingly, approached the Department for refund of the amount of such credit. The Assessing Officer refused to grant the same. The Commissioner of Appeals allowed the same. Thereafter, the amount of such credit has been refunded to the appellant. Appellant claimed and the Department agreed to pay 6 per cent interest thereon also. However, the Department later decided not to give the same. Appellant asked for interest from the date of expiry of three months from the date of application till the date of refund. When the matter reached before the Tribunal, the Tribunal felt that it was not a refund of the duty as such, as the credit lying in the accounts of the appellant was not the duty used by the Department and, as such, no interest is payable thereon. In this background, the present appeals have been preferred. Appellant contends that the Tribunal has not taken into account the provisions of Section 11BB as well as the provisions of Section 11B(2)(c) of Central Excise Act, 1944 (hereinafter referred to as the Act). Section 11BB of the Act is as follows: -

(2.) SECTION 11B(2) of the Act and its first proviso is as follows: -

(3.) WE , accordingly, interfere, set aside the judgment of the Tribunal and remit back the matter to the Tribunal for de novo decision, except the conclusion of the Tribunal in the judgment impugned in these appeals to the effect that no interest on such refund is payable. The appeals are disposed of accordingly.