Custom, Excise & Service Tax Tribunal
M/S. Surajbhan Synthetics (P) Ltd vs Cce, Hyderabad-Iv on 15 July, 2013
CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT BANGALORE
Bench SMB
Court I
Date of Hearing:15/07/2013
Date of decision:15/07/2013
Appeal No.E/2065/2011
(Arising out of Order-in-Appeal No.41/2011(H-IV)CE dt. 18/03/2011 passed by CC,CE&ST(Appeals-II), Hyderabad)
M/s. Surajbhan Synthetics (P) Ltd.
..Appellant(s)
Vs.
CCE, Hyderabad-IV
..Respondent(s)
Appearance None for the appellant.
Ms. Sabrina Cano, Superintendent(AR) for the respondent.
Coram:
Honble Mr. B.S.V. Murthy, Member(Technical) FINAL ORDER No._______________________ [Order per: B.S.V. Murthy] Brief facts of the case are that the appellants filed refund application for Rs.3,44,972/- on the ground of opting out from the CENVAT Scheme to avail full exemption of duty on their products from August, 2004 vide Notification No.30/2004-CE dt. 09/07/2004 and paid Rs.3,46,072/- vide TR.6 challans towards CENVAT at credit lying in balance of account on inputs, processing of goods and finished goods lying on 20/08/2004 but claimed refund of Rs.3,44,972/-. The said claim was rejected by the adjudicating authority vide C.No.V/54/18/29/2007-R dt. 09/04/2009. Aggrieved by the said order, the appellants filed an appeal with Commissioner(Appeals). The Commissioner(Appeals) vide Order-in-Appeal No.36/2009-(H.IV)CE dt. 30/09/2009 allowed the appeal with consequential relief. However the Committee of Commissioners reviewed the order and filed an appeal along with stay application in this Tribunal. This Tribunal vide its Final Order No.1156/2010 dt. 07/09/2010 rejected the appeal filed by the Department. In view of the above, the appellant filed for refund of Rs.3,44,972/- which was sanctioned by the jurisdictional Assistant Commissioner, vide Order-in-Original No.47/2001(R) dt. 24/01/2011 under Section 11BB of the Central Excise Act, 1944. The assessee filed appeal before the Commissioner(Appeals) for interest on the refund amount of Rs.3,44,972/- from the date of filing of refund. Commissioner(Appeals) after considering the appeal filed by the appellant came to the conclusion that appellant was eligible for refund after accounting 3 months from the date of receipt of the order of the Tribunal dt. 07/09/2010. The appellant is in appeal against this decision.
2. Nobody is present on behalf of the appellant. Heard the learned AR.
3. I find that the Department has taken a view that appellant is eligible for refund from three months from the date of receipt of the order of the Tribunal which attained finality as regards exemption as well as eligibility for refund. In such cases, it is settled law that the interest is payable from the date of filing the refund claim and not from the date of receipt of the final order of the Tribunal. In this case, the subject matter of the dispute itself was interest on the refund claim by the appellant after three months from the date of filing the refund claim. In such a situation, the stand taken by the Commissioner(Appeals) that three months has to be accounted from the date of receipt of the final order of the Tribunal taking a view that interest is admissible is not correct. I find that in the case of Ranbaxy Laboratories Ltd. Vs. UOI & Ors. [2011-TIOL-105-SC-CX], it has been held that liability of Revenue to pay interest under Section 11BB from the date of receipt of application for refund under Section 11B (1) of the Act. In this case, the refund claim was filed on 29/05/2007 before the original authority and therefore, the interest has to be paid calculating 3 months from that date. The appeal is allowed on the above lines.
(Pronounced and dictated in open court) (B.S.V. MURTHY) MEMBER (TECHNICAL) Nr 4