CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL NEW DELHI PRINCIPAL BENCH –COURT NO. 4 Excise Appeal No. 55256 of 2023 (Arising out of Order-in-Appeal No. BHO-EXCUS-001-APP-196-22-23 dated 23.01.2023 passed by the Commissioner (Appeals), CGST & Central Excise, Bhopal)

Bharat Heavy Electricals Limited Appellant (Excise & Taxation Division)

Block-VI, Annexe WWGF P.O. Piplani, Bhopa - 42022 Versus Commissioner of CGST & Central Excise, Respondent Bhopal

35-G. GST Bhawan, Arera Hills, Jail Road, Bhopal-462011.

Appearance:

Present for the Appellant: Shri Z.U. Alvi, Advocate Present for the Respondent: Shri Kuldeep Rawat, Authorized Representative CORAM:

Hon’ble Dr. Rachna Gupta, Member (Judicial)

Date of Hearing/Decision: 25/06/2025 Final Order No. 50946/2025 Dr. Rachna Gupta:

The present appeal has been filed by the appellant to assail the Order-in-Appeal No. 196/2022-23 dated 23.01.2023 vide which the appellant is denied to be entitled for the interest on the amount as has already been sanctioned to the appellant vide the Order-in- Original No. 10/2020-21 dated 23.02.2021. The facts relevant for the present adjudication, succinctly, are as follows:

1.1 That M/s Bharat Heavy Electricals Ltd., BHEL , Bhopal (the appellant) had applied a refund claim dated 06.09.2017 for refund in cash of total accumulated Cenvat of Rs. 1,56,27,241/-. On verification of the refund claim, it was observed that there are no provisions for such refund. Accordingly, Assistant Commissioner issued a Show Cause Notice No. 05/AC/CEX/ADJ/BPL-I/2017-18 dated 23.11.2017 to the claimant proposing disallowance of the refund claim. After following the procedure of natural justice, the Assistant Commissioner rejected the refund claim vide Order No. 26/AC/ST/Ref/BPL-I/2017-18 dated 12.07.2018. The Commissioner (Appeals) also dismissed the appeal vide Order-in-Appeal No. 230- 18-19 dated 28.09.2018. The appeal against the said order has been allowed vide the Final Order of this Tribunal bearing No. A/51849/2019 dated 26.04.2019. Since the department filed an appeal against the said final order before Hon‟ble High Court, Madhya Pradesh that the claim was proposed to be rejected vide Show Cause Notice No. 01/2020-21 dated 04.12.2020 on seven grounds as mentioned in the said show cause notice, as follows:

“(i) The judgment of the Hon‟ble Supreme Court in the case of Eicher Motors has no applicability to the present case;

(ii) The Learned Tribunal has erred in inferring that as there is no provision in new law to lapse the balance of credit, the same is liable to be refunded in cash;

(iii) The refund claim was not filed by the claimant under the provisions of Rule 5 of the CENVAT Credit Rules, 2004;

(iv) The learned Tribunal has erred in ignoring the judgment of the Hon‟ble High Court of Rajasthan in the case of Banswara Syntex Ltd. Vs. Commissioner of Central Excise – 2019 (365) ELT 773 wherein it was held that the balance of credit of education cesses available as on 1.3.2015 from which these levies were discontinued, was not liable to be refunded in cash;

(v) The learned Tribunal has wrongly held that the balance of CENVAT credit available at the time of closure of the factory of the assessee or withdrawal of the levy was refundable in cash;

(vi) The order of the learned Tribunal is contradictory to the decision of the Hyderabad Bench of the Tribunal in the case of Claimant‟s Hyderabad unit;

(vii) The issue has been finally decided in favour of the revenue by the Division Bench of Hon‟ble Madras High Court vide its order dated 16.10.2020 in the case of Commissioner of CGST & Central Excise Vs. Sutherland Global Services Pvt. Ltd.”

1.2 However, the proposal was not accepted and the amount of refund claim was sanctioned as well as disbursed vide the aforesaid order-in-original (dated 23.02.2021). Since the interest in terms of Section 11BB of Central Excise Act was not granted while sanctioning the said refund that the appeal was filed before Commissioner (Appeals) who vide the impugne