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2013 (12) TMI 681 - AT - Central ExciseDenial of Interest on refund Held that - Following Ranbaxy Laboratories Ltd. vs. Union of India 2011 (10) TMI 16 - Supreme Court of India - Interest on delayed refund is payable under Section 11BB of Central Excise Act, 1944 on the expiry of period of three months from the date of receipt of application under Section 11B(I) and not from the date of order of refund or appellate order allowing such refund - the refund has been asked for the period from 21.09.1992 to 17.9.2002 but, the refund applications have been filed on 25.02.1991 which is prior to introduction of Section 11BB of the Central Excise Act, 1944- the provisions would start after three months from the date of assent of the President in the Finance Bill 1994 i.e. w.e.f 26.5.1995 - interest on the delayed refund is payable for the period from 25.08.1995 to 17.09.2002 - adjudicating authority directed to calculate the amount of interest and pay the to the appellants Decided in favour of Assessee.
Issues: Interest on delayed refund under Section 11BB of Central Excise Act, 1944.
Analysis: The appellants appealed against orders denying interest on refund, citing finality achieved through a previous Supreme Court order. The issue revolved around interest on delayed refunds sought from 21.09.1992 to 17.9.2002 for duty paid under protest. The judgment in the case of Ranbaxy Laboratories Ltd. vs. Union of India clarified that interest is payable under Section 11BB from three months after the application's receipt, not from the refund order date. As the refund applications were filed before the introduction of Section 11BB, interest provisions started after three months from the President's assent in the Finance Bill 1994. Following the Ranbaxy judgment, interest on delayed refund was deemed payable from 25.08.1995 to 17.09.2002. The tribunal, after hearing both sides, directed the adjudicating authority to calculate and pay the interest amount to the appellants within thirty days. The appeals were disposed of accordingly.
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