2026-VIL-253-CESTAT-ALH-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Refund of Central Excise Duty, Interest on Delayed Refund - A fire accident took place in their factory resulting in destruction of 'semi-finished goods in process' and the 'finished good' available in the factory. The appellant reversed the CENVAT credit and filed an application for remission of duty involved in the goods destroyed in fire. The application for remission was rejected by the Department and the appellant's appeal against the order was allowed by the Commissioner (Appeals), allowing refund along with interest at the rate prescribed under Section 11BB of the Central Excise Act, 1944 - Whether the appellant is entitled to interest at the rate of 12% per annum on the refund amount or the interest rate prescribed under Section 11BB of the Central Excise Act, 1944 is applicable – HELD – The refund of the amount claimed by the appellant is nothing but Central Excise Duty, and the refund of the same will be governed by the provisions of Section 11B and Section 11BB of the CEA, 1944. The decisions relied upon by the appellant which were in respect of the amounts deposited by the appellant during course of investigation are distinguishable and cannot be relied upon for granting them interest @ 12% as claimed by them – As per the Supreme Court decision in Mafatlal Industries case, all the refunds which are filed under the Central Excise Act, 1944 are governed by the provision of Section 11B of the Act. The interest thus gets governed by the provisions of Section 11BB as held by the Supreme Court in the case of Ranbaxy Laboratories Ltd. - The interest rate prescribed under Section 11BB of the CEA, 1944 is applicable in the present case and the appellant is not entitled to interest @ 12% per annum as claimed – The appeal is rejected
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