Interest
on delayed refunds CESTAT,
OIKOS
v.
Commissioner of Central Excise,
DR. SX. PEERAN,
JUDICIAL MEMBER
AND TJC JAYARAMAN, TECHNICAL MEMBER
MISC. ORDER NO.
567 OF 2007
MISC. APPLICATION NO. 158 OF 2007
SERVICE TAX APPEAL NO. 11 OF 2004
November 12, 2007
Section 11BB of the Central Excise Act, 1944 - Interest on delayed
refunds -Consequent to a final order of Tribunal
dated 6-10-2006 which was received in Commissioner office
on 30-11-2006, assessee became eligible for refund of service tax paid - Assessee filed a refund claim along with interest on interest
- Asstt. Commissioner sanction refund claim
without any interest on 26-2-2007 - Whether since refund had been paid within
three months from date of receipt of Tribunal's order in Commissioner's office, there
was no strong case for granting interest to
assessee
and Misc. application filed against order of Assistant Commissioner was to be rejected - Held, yes (Para 4]
FACTS
Consequent to a order of the Tribunal,
the assessee become entitled for a refund. It filed a refund claim along with interest on
interest However, the Assistant Commissioner sanctioned
the refund of service-tax without payment of interest.
On application :-
HELD
The refund arose consequent to the
Tribunal. Final order dated 6-10-2006. That order was. received in the Commissioner's office
only on 30-11-2006 and the refund had been paid on 26-2-2007 i.e. within three
months from the date of receipt of the Tribunal's order in the Commissioner's
office. In these circumstances, there was no strong case for granting interest to the assessee. The action of
the department was also in accordance with the Board's
Circular dated 8-12-2004. Hence, there was no merit in the Misc. application
and the same was to be rejected. [