Commissioner of Central Excise Vs Riba Textiles Limited (Punjab And Haryana High Court)
The Punjab and Haryana High Court dismissed the Revenue’s appeal against the orders of the Customs, Excise & Services Tax Appellate Tribunal, Chandigarh, whereby M/s Riba Textiles Limited was held entitled to interest on delayed refund from the date of deposit till realization. The dispute arose from the assessee’s claim for refund of central excise duty along with interest. The assessee, having its registered office at Sonepat, had approached the Deputy Commissioner, Central Excise, Division Panipat. By order dated 21st June, 2017, the Deputy Commissioner sanctioned refund of Rs.54.00 lacs but rejected the claim for interest.
The assessee challenged the rejection of interest before the Commissioner of Central Excise (Appeals), Panchkula, but the appeal was dismissed vide order dated 18th January, 2018. The assessee thereafter approached CESTAT, Chandigarh, which by order dated 7th January, 2020 held that the assessee was entitled to interest on the delayed refund from the date of deposit till its realization. The assessee approached the Panipat Division authorities for refund on 24th February, 2020. While that application was pending, the Commissioner of CGST and Central Excise, Panchkula filed an application for rectification of mistakes before CESTAT. The rectification application was dismissed on 30th December, 2021, following which the Revenue filed the present appeal before the High Court.
