COMMISSIONER OF CENTRAL EXCISE Vs. SHALIMAR PAINTS LTD.

JUDGEMENT

(1.) Heard Shri J R Madhiam, Ld.JDR for the Appellants -Revenue and Shri P K Das, ld.Advocate for the respondents.

(2.) Shri Madhiam submits that in the present case, the Commissioner (Appeals) upheld the claim of the respondents for payment of interest on late refund of predeposit on the strength of the provisions of Section 11BB of Central Excise Act, 1944. He submits that no such provisions exists. The interest on predeposit is not payable. He relies on the decision rendered in the case of Akai Impex Ltd. v. Commissioner of Customs, Mumbai . He, therefore, submits that the appeal may be allowed.

(3.) Shri Das submits that the Board of Central Excise and Customs has directed to pay the interest on predeposit after the Courts, Order if the payments are not made within three months. He submits that the Hon'ble Supreme Court in the case of Commissioner of Central Excise, Hyderabad v. ITC Ltd. reported in 2005 (179) ELT 15 (SC) has held that the interest on delayed refund of predeposit is payable at the rate of 12%. He, therefore, submits the appeal may be dismissed.