2024 (10) TMI 1341 - HC - Central Excise

Appropriate interest for the delay of rebate to the petitioner - Section 11BB of the Central Excise Act, 1944 - HELD THAT - In the light of the undisputed fact that the respondent did not grant refund in favour of the petitioner within the maximum prescribed period of three months from the date of the petitioner submitting the refund claim in relation to the amount rejected in the first instance by the respondent which was allowed/granted in favour of the petitioner - the respondent would be liable to pay interest on the refund allowed vide order dated 06.02.2023 in revision order No.46/2023 CX. The respondent is directed to grant interest in terms of Section 11BB of the Central Excise Act, 1944 in favour of the petitioner on the amount of refund as directed in revision order No.46/2023 CX dated 06.02.2023 from 09.02.2017 till the date of payment within a period of eight weeks from the date of receipt of a copy of this order - Petition allowed.

Summary

The High Court of Karnataka allowed the petition and directed the respondent to grant interest to the petitioner in accordance with Section 11BB of the Central Excise Act, 1944 on the refund amount. The interest is to be paid from 09.02.2017 until the date of payment within eight weeks from the order receipt.