Belated refund of Cenvat Credit is also eligible for interest on delayed refund under section 11BB of the Central Excise Act, 1944

Excise & Customs : Where assessee had applied for refund on 4/11-2-2003, but, had re-submitted same in June 2004 after having won on merits before Commissioner (Appeals), interest on refund would be granted with reference to 4/11-2-2003
Excise & Customs : Belated refund of Cenvat Credit is also eligible for interest on delayed refund under section 11BB of the Central Excise Act, 1944
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[2014] 50 taxmann.com 431 (New Delhi - CESTAT)
CESTAT, NEW DELHI BENCH
Rishab Velveleen Ltd.
v.
Commissioner of Central Excise, Meerut-I*
RAKESH KUMAR, TECHNICAL MEMBER
FINAL ORDER NOS. 53366-53367 OF 2014
APPEAL NOS. E/364-365 OF 2007 (SM)
AUGUST  28, 2014
Section 11BB, read with section 11B, of the Central Excise Act, 1944 - Interest - On delayed refunds - Assessee's raw material attracted Basic Excise Duty (BED) and Additional Excise Duty (Textile and Textile Articles) [AED (TTA)]; while final product attracted BED and Additional Excise Duty (Goods of Special Importance) [AED (GSI)] - Initially department did not allow use of AED (TTA) to pay BED or AED (GSI) but later Tribunal allowed same - Meanwhile assessee became eligible for area-based exemption in Uttarakhand and therefore, applied for refund of unutilized credit alongwith interest - Department granted refund but without interest on ground that section 11BB applies to refund of duty and not to refund to unutilized credit - HELD : Clause (c) of proviso to section 11B(2) refers to refund of credit - Hence, while dealing with interest on refund in section 11BB, no distinction can be made in between such credit and any other duty referred to in section 11B - Hence, assessee was entitled to interest on delayed refund [Para 6] [In favour of assessee]