2018 (5) TMI 1354 – CESTAT CHANDIGARH – TMI – Interest on delayed refund – whether the appellant is entitled to claim interest after three months from the date of filling the refund claim till its realization or not? – Held that: – Admittedly, the refund claim has been sanctioned to the appellant with a delay i.e. three months after filing the refund claim i.e. 22.01.2014. In that circumstances, the appellant is entitled to claim interest for the intervening period till the refund claim has been sanctioned – reliance placed in the case of RANBAXY LABORATORIES LTD. VERSUS UNION OF INDIA AND ORS. [2011 (10) TMI 16 – SUPREME COURT OF INDIA].
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As the part of the interest has already been sanctioned to the appellant, the same is to be deducted from the interest payable to the appellant and remaining interest is to be paid to the appellant within 30 days of this order.
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Appeal allowed. – Appeal No. E/60071/2018 – A/62240/2018-SM[BR] – Dated:- 17-4-2018 – Mr. Ashok Jindal, Member (
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sioner (A), interest was also paid. Another amount was also already reversed by the appellant of ₹ 3,61,312/- under protest on 28.03.2014 and after the ld. Commissioner (A) order, the refund claim was sanctioned. The appeal of the appellant before me is with regard to the claiming interest on the delayed refund of ₹ 5,92,815/- after three months from the date of filling the refund claim i.e. 22.01.2014 till its realization. Both the authorities below have rejected the claim of interest on the premise that as refund claim has been sanctioned in pursuant to the order of the Commissioner (A), therefore, they are not entitled to claim interest for the earlier period. Against the said order, the appellant is before me. 3. The ld. Counsel for the appellant submits that the issue has been settled by the Hon ble Apex Court in the case of Ranbaxy Laboratories Ltd. reported in 2011 (273) ELT 3 (SC), therefore, the appellant is entitled for claim of interest after three months from th
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e matter is that whether the appellant is entitled to claim interest after three months from the date of filling the refund claim till its realization or not? 7. The same issue was decided by the Hon ble Apex Court in the case of Ranbaxy Laboratories Ltd. (Supra), wherein, it has been held that the assesseee is entitled to claim interest on delayed refund after three months from the date of filling the refund claim till its realization. The sole contention of the ld. AR is that in Ranbaxy Laboratories Ltd. (Supra), it was a case of rebate claim whereas in this case it is a claim of refund of cenvat credit. The Hon ble Apex Court has decided the provisions of Section 11BB of the Act, which is applicable for rebate claim as well as refund claim. In that circumstance, I hold that the ruling given by the Hon ble Apex Court in the case of Ranbaxy Laboratories Ltd. (Supra) is applicable to the facts of this case. Admittedly, the refund claim has been sanctioned to the appellant with a delay
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