{"id":7573,"date":"2026-01-12T18:00:19","date_gmt":"2026-01-12T12:30:19","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=7573"},"modified":"2026-01-12T18:00:19","modified_gmt":"2026-01-12T12:30:19","slug":"excess-excise-duty-refund-after-11-years-attracts-12-interest-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/excess-excise-duty-refund-after-11-years-attracts-12-interest-hc","title":{"rendered":"Excess Excise Duty Refund After 11 Years Attracts 12% Interest | HC"},"content":{"rendered":"<pre><strong>Case Details:<a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000410207\/excess-excise-duty-illegally-collected-refund-after-11-years-attracts-12-interest-from-each-payment-date-hc\"> <span class=\"TextRun SCXW25362538 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SpellingErrorV2Themed SCXW25362538 BCX0\">Unipack<\/span><span class=\"NormalTextRun SCXW25362538 BCX0\">\u00a0vs. Additional Commissioner CGST,\u00a0<\/span><span class=\"NormalTextRun SCXW25362538 BCX0\">Alwar<\/span><span class=\"NormalTextRun SCXW25362538 BCX0\">\u00a0(2025) 36\u00a0<\/span><span class=\"NormalTextRun SpellingErrorV2Themed SCXW25362538 BCX0\">Centax<\/span><span class=\"NormalTextRun SCXW25362538 BCX0\">\u00a064 (Raj.)<\/span><\/span><span class=\"EOP SCXW25362538 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:280}\">\u00a0<\/span><\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>K.R. Shriram<\/strong>, CJ. &amp; <strong>Maneesh Sharma<\/strong>, J.<\/li>\n<li><strong>S\/Shri R. Krishnan<\/strong>,<strong> VC with Shankar Lal Verma<\/strong> &amp;\u00a0<strong>Nirmal Kumar Goyal<\/strong>, for the Petitioner.<\/li>\n<li><strong>S\/Shri Kinshuk Jain<\/strong> with <strong>Saurabh Jain<\/strong>, for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The petitioner challenged the denial of interest on excise duty that had been collected in excess due to the inclusion of non-manufacturing turnover. While the refund of excess duty was granted after over eleven years, the claim for interest was rejected. The petitioner contended that the excess collection was without authority of law and that interest at 12% per annum was payable from the date of each payment until refund. The matter was accordingly placed before the High Court.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The High Court held that the department\u2019s collection and retention of excess excise duty was without authority of law and directed that interest at 12% per annum be paid from the date of each actual payment of excess duty until its refund. The Court observed that denying interest contrary to Supreme Court rulings was arbitrary and unjust. The writ petition was allowed, and the respondents were directed to refund the excess excise duty with applicable interest.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=1997%20(89)%20E.L.T.%20247%20(S.C.)&amp;itemType=AP\">Mafatlal Industries Ltd. v. Union of India<\/a> \u2014 1997 (89) E.L.T. 247 (S.C.) \u2014 Followed [Paras 9, 15, 20]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=1989%20(43)%20E.L.T.%20253%20(Del.)&amp;itemType=AP\">Redihot Electricals v. Union of India<\/a> \u2014 1989 (43) E.L.T. 253 (Del.) \u2014 Relied on [Paras 9, 16, 20]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2006%20(196)%20E.L.T.%20257%20(S.C.)&amp;itemType=AP\">Sandvik Asia Ltd. v. Commissioner<\/a> \u2014 2006 (196) E.L.T. 257 (S.C.) \u2014 Followed [Paras 18, 20]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=1990%20(49)%20E.L.T.%2045%20(Raj.)&amp;itemType=AP\">Swastik Metals v. Union of India<\/a> \u2014 1990 (49) E.L.T. 45 (Raj.) \u2014 Relied on [Paras 9, 17, 20]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2024)%20462%20ITR%2058%20(Bom.)&amp;itemType=AP\">Vinoba B. Jain v. JT. CIT<\/a> \u2014 (2024) 462 ITR 58 (Bom.) \u2014 Relied on [Paras 18, 20]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Unipack\u00a0vs. Additional Commissioner CGST,\u00a0Alwar\u00a0(2025) 36\u00a0Centax\u00a064 (Raj.)\u00a0 Judiciary and Counsel Details&hellip;<\/p>\n","protected":false},"author":16,"featured_media":7578,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-7573","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Excess Excise Duty Refund After 11 Years Attracts 12% Interest | HC<\/title>\n<meta name=\"description\" content=\"High Court holds that illegally 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