2018 (4) TMI 1556 - AT - Customs

Interest of delayed refund - relevant date - appellant claimed interest after expiry of three months from the date of refund application, while Revenue Authorities are denying the same stating that interest is not payable to appellant as refund in sanctioned within three months from the date of Tribunal s order - Held that - The law is settled by the Hon ble Apex Court in the case of M/s Ranbaxy Laboratories Ltd., 2011 (10) TMI 16 - SUPREME COURT OF INDIA , wherein the Apex Court has held that interest liability arises in case of delayed refund and is to be paid after expiry of three months from the date of receipt of refund application, till the sanction of refund - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT HYDERABAD allowed the appeals of the assessee regarding interest on delayed refund, citing the case of M/s Ranbaxy Laboratories Ltd. Interest is payable after three months from the refund application until the refund is sanctioned. The impugned order was set aside, and the Revenue Authorities were directed to grant interest as per the Apex Court's ruling.