Custom, Excise & Service Tax Tribunal
Tien Yuan India P. Ltd vs Cce Belapur on 29 November, 2017
IN THE CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL
WEST ZONAL BENCH AT MUMBAI
Appeal No.
E/87772/16
(Arising out Order-in- Appeal No. PK/48/BEL/2016 dated 29.09.2016 passed by the Commissioner of Central Excise(A), Mumbai)
For approval and signature:
Honble Shri Raju, Member (Technical)
1. Whether Press Reporters may be allowed to see No
the Order for publication as per Rule 27 of the
CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the No CESTAT (Procedure) Rules, 1982 for publication
in any authoritative report or not?
3. Whether Their Lordships wish to see the fair copy Seen
of the Order?
4. Whether Order is to be circulated to the Departmental Yes
authorities?
Tien Yuan India P. Ltd.
Appellant
Vs.
CCE Belapur
Respondent
Appearance:
Shri Prakash Shah, Advocate for the appellant Shri D.S. Chauhan, Supdt. (AR) for the respondent CORAM:
Honble Shri Raju, Member (Technical) Date of hearing : 27.10.2017 Date of decision : 29.11.2017 O R D E R No: ..
Per: Raju This appeal has been filed by Tien Yuan India P. Ltd. against denial of interest on refund sanctioned to them.
2. Ld. Counsel for the appellants pointed that a certain investigation was conducted in respect of availment of cenvat credit and the appellants deposited `2 crores at the time of investigation. The demand of `22,13,22,732/- was confirmed by the Commissioner and the said amount of `2 crore was appropriated towards confirmation of cenvat credit vide order of Commissioner dated 09.03.2009. In appeal, Tribunal vide order dated 05.11.2014 confirmed a demand of `3,93,778,240/- against the appellants unit in Jammu and confirmation of demand of `22,13,22,732/- was set aside by the Tribunal. While setting aside this demand against the appellants, Tribunal confirmed `1,55,105/- and `98,083/- against the appellants. Tribunal also upheld the confiscation of goods, imposition of redemption fine against the appellants. The appellants filed refund of `2 crore along with interest after adjusting the amount due to revenue. Revenue however, ordered refund of net amount being adjusting the demand confirmation and redemption fine imposed on the appellants. The interest was paid on the net amount sanctioned and not on the full `2 crores which was originally deposited by the appellants. In this appeal, the appellants are seeking grant of interest on the entire value of `2 crores and are challenging the grant of interest of only on the net value after adjusting of certain other demand and other redemption fine. The appellants had taken the matter to the Hon'ble High Court. The Hon'ble High Court vide order dated 01.03.2006 in writ petition 6339 of 2015 directed as under:-
13.?In the present case, the application made for refund under Section 11B is dated 4th October, 2006. The amount of refund as directed in terms of the order dated 28th April, 2015 has been disbursed and paid on 28th April, 2015 by RTGS.
14.?Therefore, the petitioners are entitled to interest at the rate of 6% from the expiry of the period of three months from the date of the application, meaning thereby the amount shall carry interest at the rate of 6% per annum from 4th January, 2007 to 27th April, 2015. This figure shall be calculated and the amount be paid within a period of two weeks from the date of receipt of a copy of this order. Ld. Counsel argued that in terms of Hon'ble High Court order, interest on the entire `2 crore should be granted and not merely on the net value after adjusting redemption fine and demand confirmed.
3. Ld. AR appearing on behalf of the revenue reiterates the finding of the impugned order. He argued that in para 13 of its Hon'ble High Court after noting the refund has been granted ordered payment of interest. He argued that in these circumstances, interest only on the net amount which was sanctioned to the appellants could be granted.
4. I have gone through the rival submissions. I find that the appellants had deposited `2 crore during investigation against demand of reversal of cenvat credit. The said demand of reversal of cenvat credit was set aside by Tribunal and consequently refund of `2 crore became due to the appellants with effect from 04.01.2007 onwards till 27.04.2015. The appellants would be rightly entitled to the interest on the entire amount of `2 crore in terms of order of Hon'ble High Court. The adjustment if any of redemption fine and confirmation demand can be done only after calculating and granting interest on the entire value of `2 crores.
5. The appeal is consequently allowed.
(Pronounced in Court on ..............................) (Raju) Member (Technical) //SR
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E/87772/16