RAMA VISION LIMITED Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The outstanding issue between the parties is non -payment of interest on the refund amount. Ld. Counsel for the appellants points out that the duty was paid during 1995 -96 and the refund application was filed within time. After several rounds of proceedings,, the Tribunal allowed the refund application, which had originally been rejected on the ground of time bar, vide its Final Order No. 281/2003 -NB (A) dated 10 -6 -2003 [2003 (162) E.L.T. 664 (T)]. The appellant moved this Tribunal complaining that its order was not being implemented correctly. Therefore, we passed Misc. Order No. 50/2004, dated 13 -2 -2004 [2004 (165) E.L.T. 518 (T -LB)]. In that order, we also directed that "there will be a further direction to the respondents to pay interest to the appellant in accordance with the rules".

(2.) Ld. Counsel for the appellants have now submitted that the interest paid was only for the delay after passing of our Final Order, while Section 11BB of the Central Excise Act required the authorities to pay interest "from the date immediately after the expiry of three months from the date of receipt of such application till the date of refund of such duty." Ld. Counsel also pointed out that the "Explanation" to the Section made it further clear that when the refund is paid pursuant to an order -in -appeal the period for computing interest would be the same as when the refund is allowed by the Asstt. Commissioner under Section 11B(2) of the Central Excise Act i.e. "expiry of three months from the date of receipt of such application till the date of refund of such duty". Ld. Counsel has submitted that in this legal position, the appellant was entitled to interest from the date of expiry of 3 months from the date of receipt of their refund application.

(3.) We have perused the records and have considered the submissions made by both sides. The period of interest is clearly laid down in Section 11BB of the Central Excise Act and that period commences with the expiry of three months from the date of receipt of the refund application and is till the date of refund. The period remains the same even when the refund application was originally rejected by the Asstt. Commissioner and later on, sanctioned by an appellate authority. In the present case, the refund claim was originally rejected by the Assistant Collector. After several rounds of proceedings, the appellants have finally succeeded. The law requires that interest be paid from the date immediately "after the expiry of 3 months from the date of receipt of such application till the date of refund of such application". When the legal position is so clear, we are not able to appreciate the Revenue authorities net giving interest for the period as stipulated in Section 11BB. It is accordingly, directed that the interest be paid for the full period as counted from the receipt of the refund application. The appellant is a sick company and the refund amount is due for about 9 years. We, therefore, direct that the interest amount be calculated correctly and paid to the appellant within a period of two weeks from the date of receipt of a copy of this order.