M/S. Chackolas Spinning And Weaving Mills LTD. vs. Union Of INDIA
Held
The Court held that the company is entitled to interest on the delayed refund as per Section 11BB of the Central Excise Act. The explanation to Section 11BB does not postpone the date from which interest becomes payable.
Facts
The petitioner company paid excess excise duty due to provisional assessment. After final assessment, a refund was due, but the department issued multiple show-cause notices and delayed the refund, prompting the company to claim interest. The department contested the interest claim based on the explanation to Section 11BB.
Key Issues
Whether the petitioner is entitled to interest on the delayed refund of excise duty, and how the period for calculating such interest should be reckoned under Section 11BB.
Sections Cited
Section 11BB
AI-generated summary — verify with the full judgment below
C.R. IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU FRIDAY ,THE 14TH DAY OF DECEMBER 2018 / 23RD AGRAHAYANA, 1940 WP(C).No. 20921 of 2018 PETITIONER/S: 1 M/S. CHACKOLAS SPINNING AND WEAVING MILLS LTD. PB NO.3,KALAMASSERY, KOCHI- 683 104, REPRESENTED BY ITS DIRECTORPAUL JOHN CHAKOLA 2 PAUL JOHN CHAKOLA AGED 37, S/O. JOHN.P.CHAKOLA,RESIDING AT 'PARIJATHAN',PARIJATHAM ROAD, PATHADIPALAM,CHANGAMPUZHA NAGAR.P.O.KOCHI- 682 033 BY ADVS. SRI.P.G.JAYASHANKAR SMT.LINTA VARGHESE RESPONDENT/S: 1 UNION OF INDIA REPRESENTED BY ITS SECRETARY,DEPARTMENT OF REVENUE,MINISTRY OF FINANCE,CENTRAL SECRETARIAT, NEW DELHI- 110 001 2 CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS NORTH BLOCK, CENTRAL SECRETARIAT,NEW DELHI- 110 001, REPRESENTED BY ITS CHAIRMAN 3 COMMISSIONER OF CENTRAL TAXES AND CENTRAL EXCISE CR BUILDINGS, IS PRESS ROAD, KOCHI- 682 018
WPC No.20921 of 2018 2 4 ASSISTANT COMMISSIONER OF CENTRAL TAXES AND CENTRAL EXCISE KAKKANADU DIVISION,GST BHAVAN, KATHRIKADAVU, KALOORKOCHI- 682 017 5 SUPERINTENDENT OF CENTRAL TAXES KAKKANAD RANGE-
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