Custom, Excise & Service Tax Tribunal
Malwa Cotton Spinning Mills Ltd vs Cce, Ludhiana on 12 March, 2013
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL,
WEST BLOCK NO.II, R.K. PURAM, NEW DELHI-110066.
DIVISION BENCH
Court No.2
Appeal No.E/2632/2005
(Arising out of OIA No.187/CE/APPL/LDH/2005 dt.25.03.2005 passed by CCE(A), Ludhiana)
Date of Hearing/decision: 12.03.2013
Malwa Cotton Spinning Mills Ltd. Appellant
Vs
CCE, Ludhiana Respondent
Present for the Appellant: Shri Udit Jain, Advocate Present for the Respondent: Shri M.S.Negi, DR Coram: Honble Mr.D.N.Panda, Judicial Member Honble Mr.Manmohan Singh, Technical Member FINAL ORDER NO. 55841/2013 PER: D.N.PANDA This appeal is against denial of interest on delayed refund from the date of filing of application. Ld. Counsel prays submits that refund is admissible that refund is admissible from the date of filing and not from the date of rectification of defective application.
2. Revenues contention is that date of filing of refund application without any defect therein shall be counted for payment of interest by Department in case there is delay in refund. But when a defective application is filed and that was rectified subsequently within limitation period, the date for payment of interest in case of delayed refund is date when proper refund application comes to record of Department. We agree to this proposition of Revenue.
3. It is settled law that once the claim does not assume the character of correct claim in the eyes of law, no right accrues to the claimant from the date on which defective application was filed and an opportunity given for removal of defects is a course of natural justice to entertain proper application filed within limitation no interest can be claimed against a defective application. Only on the date when defective application is rectified and a proper application comes to record, that date is relevant date for arise of refund with, interest in case refund is delayed. Therefore Revenue is correct to grant interst from the date on which valid application comes to record. We do not find any legal infirmity in the order of the first appellate authority for which appeal of the assessee is dismissed.
(Dictated & pronounced in the open court) (D.N.PANDA) JUDICIAL MEMBER (MANMOHAN SINGH) TECHNICAL MEMBER mk ??
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