Appellant entitled to interest on delayed refund as per Sections 11B and 11BB of the Central Excise Act, which specifically governs the timing and rate of interest applicable.

ORDER

Present appeal present bearing No. 234/CE/NOIDA/APPL/GBN/2024-25 dated 16.10.2024, filed by M/s Sheela Foam Limited, 51A, Udyog Vihar Greater Noida, (U.P.) is hereby allowed in above terms with consequential relief.”

2.1 The Appellant having Central Excise Registration Certificate No.AAACS0189BXM001 were engaged in manufacture of PU foam mattresses falling under Chapter Heading 39 of the Central Excise Tariff Act 1985. They were also availing the facility of CENVAT Credit on inputs & capital goods under the provisions of the CENVAT Credit Rules, 2004.

2.2 The Appellant filed a letter dated 13.12.2023 for the refund of Rs. 35,60,087/- in pursuance to the Tribunal’s Final Order No. 70132/2022 dated 02.08.2022 read with Misc Order No. 70131/2023 dated 16.11.2023 passed against Order-in- Original No. 1/Commissioner/G.B.Nagar/2018-19 dated 04.08.2019 passed by the Commissioner, Central Excise & CGST, Gautam Buddh Nagar.

2.3 On 27.08.2009 a fire accident took place in the factory of the Appellant resulting in destruction of 'semi-finished goods in process' and the 'finished good' available in the factory. The Appellant informed the jurisdictional Assistant Commissioner and the Range Officer, regarding this accident vide the letter dated 27.08.2009. The Appellant vide their letter dated 26.02.2010 intimated that they had reversed the CENVAT credit of Rs.41,01,620/-.

2.4 Thereafter the Appellant filed an application in terms of Rule 21 of the Central Excise Rules, 2002 for remission of duty amounting to Rs.40,97,341/-, involved in the goods destroyed in fire. The Department issued a Show Cause Notice dated 27.08.2010 to the Appellant proposing rejection of remission on the ground that the fire accident in their factory cannot be treated as natural cause or unavoidable accident and thus Central Excise duty of Rs. 40,97,341/- was proposed to be recovered. The Show Cause Notice further required the Appellant to pay the interest on CENVAT Credit of Rs. 41,01,620/- reversed alleging that the same was reversed belatedly.

2.5 The Show Cause Notice was adjudicated by the Commissioner, Customs & Central Excise, Noida vide Order-in- Original No.01/Commissioner/Remission/2013-14 dated 10.07.2013 against the party, confirming the demand of Central Excise Duty of Rs. 40.97.341/- along with interest & the demand of interest on the CENVAT credit of Rs. 41,01,620/-already reversed by the party. It was also held that remission of duty on 'semi-finished goods' is not covered under Rule 21 as duty is chargeable on the 'finished goods' when manufacture is complete and final products are manufactured. Regarding 'finished goods' destroyed in fire, it was held that surveyors report was not provided to substantiate the averment of the party that insurance claim filed by them did not include the element of excise duty on the goods destroyed.

2.6 Aggrieved Appellant filed the appeal before the Commissioner (Appeals) who has allowed the appeal filed by the Appellant allowing refund of Rs.35,60,087/- alongwith interest at the rate prescribed under Section 11BB of the Central Excise Act, 1944 .

2.7 Aggrieved Appellant has filed the present appeal requesting interest @12% from the date of deposit till the sanction of the refund claim.

3.1 Heard Shri Pravin Sharma, Advocate for the Appellant and Shri Manish Raj, Authorized Representative for the Revenue.

4.1 I have considered the impugned order along with the submissions made in appeal and during the course of arguments.

4.2 Appellant has filed this appeal assailing the above order and have claimed the interest from the date of deposit at the rate of 12%. They have claimed the same on the basis of the order of the Tribunal in the case of:

 Indore Treasure Market City (P) Ltd. [(2024) 20 CENTAX 469 (Tri.Del.)]. Appeal filed by the revenue has been dismissed as reported at (2024) 20 CENTAX 470 (MP)], holding that no substantial question of law arises in the matter.

 R S Enterprieses [2023 (384) ELT 711 (T-Del)]

 Allied