1999 (6) TMI 43 - CGOVT - Central Excise

Summary

Issues involved: Interpretation of Section 11BB of the Central Excise Act, 1944 regarding payment of interest for delayed grant of rebate/refund.

The judgment pertains to three Revision Applications filed against an Order-in-Appeal passed by the Commissioner (Appeals), Delhi. The Asstt. Commissioner had sanctioned rebate claims for central excise duty paid on exported electric fans and inputs used in manufacturing, directing the applicants to take credit in their Modvat account. The Commissioner (Appeals) allowed the appeal, ordering the rebate to be paid in cash or by cheque. The advocate representing the applicants highlighted non-payment of interest u/s 11BB and cited relevant Board's instructions. The Government noted the statutory provision of Section 11BB for interest payment on refunded duty and CBEC's circular emphasizing disposal of refund applications within 3 months. The judgment observed a discrepancy between written and unwritten laws impacting exchequer losses and lack of accountability. Consequently, the Government allowed the Revision Applications, instructing the concerned Central Excise Commissioner to take prompt action on interest payment and enforce accountability within the Department to maintain credibility.