- (1.) This appeal filed by the appellant-revenue under Section 35G of the Central Excise Act, 1944 (for brevity, the Act'), prays for quashing order dated 29-6-2006, passed by the Customs, Excise and Service Tax Appellate Tribunal, Now Delhi (for brevity, the Tribunal'). The appellant-revenue has claimed that the following substantial question of law would arise for determination of this Court :- "Whether the refund claim of excess amount of interest paid by the party under Section 11B of the Central Excise Act, 1944, is legally correct?"
(2.) Brief facts of the case necessary for disposal of the controversy raised are that the assessee-respondent M/s Northern Minerals Ltd. are engaged in the manufacture of pesticides and insecticides falling under Chapter Heading No. 3801.10 and 3808.20 respectively of the Central Excise Tariff Act, 1985 (for brevity, the Tariff Act'). It filed refund claim of Rs. 3,26,027/- under Section 11B of the Act on the ground that they had paid excess amount of interest @ 24% per annum instead of 15% per annum on the differential duty payable during the year 2001-2002. The adjudicating authority vide order-in-original dated 13-1-2004 (P-1) rejected the refund claim on the ground that Section 11B of the Act merely provided for refund of duty paid erroneously and not interest. It was further held that rate of interest applicable during the year 2001-2002, in fact, was 24%. It was claimed that the interest has been correctly paid.
(3.) On appeal before the Commissioner (Appeals), the order-in-original was upheld and the appeal was dismissed vide order dated 5-7-2004 (P-2).;