2007 (5) TMI 610 - HC - Central Excise

Summary

Issues involved:
The entitlement of the petitioner for interest on delayed refund under Section 11BB of the Central Excise Act.

The Division Bench of the Gujarat High Court directed the respondents to refund the amount with interest as per law within a specified period. A subsequent Misc. Civil Application by the Department questioning the petitioner's entitlement to interest on refund was rejected by the Division Bench, and these orders were not challenged further. The Department argued that interest is only admissible when a refund application is made, which the petitioner had not done. However, the petitioner contended that refund applications were indeed submitted before filing the petition, and as these were undisputed and the previous court orders were final, interest should be granted u/s 11BB of the Act. The Court found in favor of the petitioner, allowing the petition and directing the respondents to pay interest on the refund considering the application submission dates.

In conclusion, the Gujarat High Court ruled in favor of the petitioner, holding that they are entitled to interest on the delayed refund as per Section 11BB of the Central Excise Act. The Court emphasized the importance of timely refund processing and upheld the petitioner's claim based on the submission dates of refund applications and the finality of previous court orders. The judgment serves as a reminder of the legal provisions governing interest on delayed refunds and the obligation of authorities to adhere to such provisions.