Order Date- 17 May 2022

Facts:

• The appellant, Wonder packaging industries, during investigation had deposited certain amount of duty. Thereafter the case of demand of duty was continuing and subsequently the demand was dropped by the Commissioner (Appeals). 
• Consequent to dropping of demand, the appellant filed refund claim. The Adjudicating Authority sanctioned the refund claim however, the appellant being aggrieved only to the extent that interest was not granted, filed appeal before the Commissioner (Appeals). 
• Learned Commissioner(Appeals) vide impugned order held that appellant is entitled for interest only after three months from the date of application of refund, whereas the appellant is seeking interest right from the date of duty deposited during investigation.

Issue:

• Whether the appellant is entitled for interest only after three months from the date of application of refund?

Order:

• The Tribunal find that as per the Clause (ec) of Section 11B (2), the relevant date for filing refund application is one year from the date of order from which the refund arose. In the present case, refund arises only after passing of order-in-appeal by the Commissioner (Appeals) dropping the demand. Therefore, there is no occasion to give refund prior to the date of order-in-appeal. 
• Considering that the refund was sanctioned within three months from the date of application and the refund arose consequent to order of Commissioner (Appeals), no interest is payable from the date of deposit of the duty during investigation.
• The appellant is not entitled for the interest on refund sanctioned from the date of deposit of duty. Consequently, the impugned order is upheld and the appeal is dismissed.