Page 116 - GSTL_7th May 2020_Vol 36_Part 1

74 GST LAW TIMES [ Vol. 36
there is no provision in the relevant statute to grant interest on delayed payment
of interest amount and that the appellant vide the impugned appeal is actually
asking for the interest on the delayed amount of interest which has been sanc-
tioned in favour of the appellant with reference to the refund which could not be
disbursed within three months of the sanction thereof. The claim herein is not for
the compensations, as is impressed by the appellant. Hence, none of the case law,
as relied upon is applicable to the present facts & circumstances.
4.1 It is submitted that rather the appellant is wrongly interpreting the
decision of Sandvik Asia Ltd. (supra). It has been pointed out that the Hon’ble Su-
preme Court has clarified therein that it is only that interest as provided for un-
der the statute which may be claimed by an assessee from the Revenue and no
other interest on such statutory interest. It was only the compensation which as
per Hon’ble Apex Court may be granted to the assessee. There is no power vest-
ed with the Tribunal to grant compensation in view of delay, if any. It is im-
pressed upon that there is no infirmity, as alleged, in the order-under-challenge.
Appeal is, accordingly, prayed to be dismissed.
5. After hearing the rival contentions of the parties and perusing the
appeal record as well as the case law relied upon. We observe and hold as fol-
lows :
Present is the case where the appellant had filed refund claims in respect
of service tax paid on certain services received and used for the export of goods
during the period from April, 2008 to June, 2008. The refund claims were accord-
ingly filed on 29-8-2008 & 29-6-2009.
These refund claim Appeals were initially rejected, however, this Tribu-
nal vide order dated 9-1-2015 while affirming the eligibility of the appellant to
said refund claims, remanded the matter back to the lower authorities for re-
examination. It is, thereafter that three of refund claims as were filed under Noti-
fication No. 41/2007, dated 6-10-2007 were got sanctioned by the original adjudi-
cation authority vide its order dated 7-5-2015. However, no interest was sanc-
tioned from the date of filing of the refund application. The interest was finally
sanctioned on delayed refund of service tax vide order dated 27-3-2018.
6. In furtherance whereof the demand of the sanctioned interest that
too @ 12.5% on the refund amount was filed by the appellant. The interest was
disbursed @ 6% vide order dated 6-7-2018. The appellant today has not contested
the rate of interest. However, has claimed the interest on the said disbursed
amount of interest on the ground that the same was disbursed after a reasonable
delay. Hence, the only question is to be adjudicated is opined as :
Whether the appellant is entitled to interest on the sanctioned amount of
interest qua refund claims which could not be disbursed with three
months thereof.
6.1 The relevant provision in this respect is Section 11BB of Central Ex-
cise Act, 1944, it reads as follows :
Section 11BB. Interest of delayed refunds. - If any duty ordered to be re-
funded under sub-section (2) of section 11B to any applicant is not refunded
within three months from the date of receipt of application under sub-
section (1) of that section, there shall be paid to that applicant interest at
such rate, not below ten per cent. and not exceeding thirty per cent. per an-
num as is for the time being fixed by the Board, on such duty from the date
immediately after the expiry of three months from the date of receipt of
such application till the date of refund of such duty :
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