News Update

Unveil One Nation; One Debt Code; One Compliance Rule for Centre & StatesChina moves WTO against US tax subsidies for EVs & renewable energyMore on non-doms - The UK Spring Budget 2024 (See TII Edit)Notorious history-sheeter Mukhtar Ansari succumbs to cardiac arrest in UP jailTraining Program for Cambodian civil servants commences at MussoorieNY imposes USD 15 congestion taxCBIC revises tariff value of edible oils, gold & silver45 killed as bus races into ravine in South AfricaCBIC directs all Customs offices to remain open on Saturday & SundayBankman-Fried jailed for 25 yrs in FTX scamI-T- Once the citizen deposits the tax upon coming to know of his liability, it cannot be said that he has deliberately or willfully evaded the depositing of tax and interest in terms of Section 234A can be waived: HCHouthis attack continues in Red Sea; US military shoots down 4 dronesI-T- Secured creditor has priority charge over secured asset, over claims of I-T Department & other Departments; any excess amount recovered by Secured Creditor from auction of secured asset, over & above the dues payable to it, are to be remitted to the Departments: HCFederal Govt hands out USD 60 mn to rebuild collapsed bridge in BaltimoreI-T - Receipts of sale of scrap being part & parcel of activity and being proximate thereto would also be within ambit of gains derived from industrial undertaking for purpose of computing deduction u/s 80-IB: HCCanadian School Boards sue social media titans for 4 bn Canadian dollar in damagesI-T - Once assssee on year of reversal has paid taxes on excess provision and similar feature appeared in earlier years and assesee had payments for liquidated damages on delay of deliverables, no adverse inference can be drawn: HCFormer IPS officer Sanjiv Bhatt jailed for 20 yrs for planting drugs to frame lawyerST - Software development service & IT-enabled service provided by assessee was exempt from tax during relevant period, by virtue of CBEC's Notification & Circular; demands raised for such period not sustainable: CESTATUN says Households waste across world is now at least one billion meals a dayCus - Order rejecting exporter's request for conversion of Shipping Bills on grounds that the same has been made by exporter beyond period of three months from date of Let Export Order in terms of CBEC Circular No. 36/2010-Cus : CESTATIndia, China hold fresh dialogue for complete disengagement on Western borders: MEACus - No Cess is payable when Basic Customs Duty is found to be Nil: CESTATThakur says India is prepared for 2036 OlympicsCX - As per settled law, a right acquired as result of a statutory provision, cannot be taken away retrospectively unless said statutory provision so provides or by necessary implication has such effect: CESTAT
 
CX - Tribunal, not being court of equity, it is difficult to entertain prayer of appellant for grant of interest from date of deposit made in accordance with HC order: CESTAT

By TIOL News Service

MUMBAI, DEC 11, 2017: IN adjudication, a duty demand of Rs.12,56,336/- was confirmed against the appellant by the adjudicating authority.

Without seeking appeal remedy before Commissioner (Appeals), the appellant filed a Writ Petition before the Bombay High Court praying that there should be no levy of anti dumping dutyduring intervening period i.e. between the period of expiry of provisional notification and issuance of definitive levy notification.

They also made an interim application in that Writ Petition praying leave of Court to deposit duty element of Rs.12,56,336/- with interest. The High Court allowed the prayer and the appellant made such deposit on 19.2.2007.

The writ petition went against appellant and consequently the petitioner filed a Civil Appeal before the Supreme Court which was disposed on 23.9.2015 holding that there shall be no levy of anti-dumping duty during the intervening period aforesaid.

Thereafter, the appellant filed a claim for refund and also sought interest from the date of deposit.

However, the Adjudicating Authority rejected such prayer of interest and this order was confirmed by the Commissioner (Appeals).

Therefore, the appellant is before the CESTAT.

The AR submitted that as soon as the Supreme Court judgment was delivered and application dated 18.1.2016 was filed by appellant seeking refund,the same was granted on 22.3.2016. Therefore, refund having been paid without any lapse of time and that too within three months from the date of application, no interest is admissible.

After considering the submissions, the Bench extracted sections 11B and 11BB of the CEA, 1944 and observed -

+ it is mandate of Section 11BB that in terms of order under sub-section (2) of Section 11B, if the refund is not granted within three months from the date of application, interest in accordance with the provision contained in Section 11BB is payable.

+ this establishes that to make refund, an order for refund is sine qua non under Section 11B(2) of Central Excise Act, 1944.

+ explanation to Section 11BB states that if any order of refund is made by any court, that is deemed to be an order passed under sub-section (2) of Section 11B. Therefore, harmonious reading of the provisions contained in Section 11B and Section 11BB demonstrates that an order of refund under Section 11B(2) is pre-requisite and default in carrying out the provision of Section 11BB gives rise to interest. [Ranbaxy Laboratories Ltd. vs. UOI - 2011-TIOL-105-SC-CX and CCE, Pune-III vs. Ballarpur Industries Ltd . - 2009-TIOL-34-HC-MUM-CX relied upon.]

+ tribunal not being the court of equity, it is difficult to entertain the prayer of the appellant for grant of interest from the date of deposit of the amount made in accordance with the order of Hon'ble High Court.

The appeal was dismissed.

(See 2017-TIOL-4354-CESTAT-MUM)


POST YOUR COMMENTS
   

AR not Afar by SK Rahman

TIOL Tube Latest

Shri Shailendra Kumar, Trustee, TIOL Trust, giving welcome speech at TIOL Awards 2023




Shri M C Joshi, Former Chairman, CBDT




Address by Shri Buggana Rajendranath, Hon'ble Finance Minister of Andhra Pradesh at TIOL Awards 2023