FINOLEX CABLES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THERE are two appeals -one filed by the Revenue and the other filed by M/s. Finolex Cables Limited. Since both the appeals pertain to the same issue they are being taken up together for consideration and disposal. M/s. Finolex Cables Limited (FIC for short) filed a refund claim for refund of duty of Rs. 4,85,337/ - vide their application dated 29 -8 -2002 on the ground that they have paid this amount in excess of duty recovered from the customers at the time of sale of the goods from the depot. After issuing a show cause notice their refund claim was rejected by the jurisdictional Assistant Commissioner vide order -in -original dated 21 -2 -2003. They preferred an appeal before the Commissioner (Appeals), Pune who vide order -in -appeal dated 29 -9 -2005 upheld the order -in -original and rejected the appeal. The assessee preferred an appeal before the CESTAT and the CESTAT vide final order dated 15 -2 -2007 held that the appellants are entitled for refund on merits. However, since the issue of unjust enrichment was not examined by the lower authorities, the Tribunal remanded the matter to the original adjudicating authority to examine the issue of unjust enrichment and thereafter sanction the refund claim if the assessee passed the test of unjust enrichment.

(2.) THE learned counsel for the assessee submits that they are entitled to interest on delayed payment of refund in terms of the provisions of Section 11BB of the Central Excise Act, 1944. The learned counsel for the assessee further submits that as the matter has been decided by the Tribunal on merits and the issue for consideration before the Assistant Commissioner was limited to only unjust enrichment, the learned Appellate Commissioner could not have remanded the matter. The advocate also submits that since they have been found entitled for the refund claim, interest should be paid to them within three months from the date of filing of the original refund application i.e., w.e.f. 29 -11 -2002 to 18 -2 -2009 the date on which they actually took the credit in the Cenvat credit.

(3.) I have carefully considered the submissions.