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TMI Blog2014 (5) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... has to pay. The payment of interest is statutory and automatically. The waiver of the interest by the party has no relevance and on the said ground payment of interest can not be denied. Petitioner is entitled for the interest under Section 11BB of the Act on the refunded amount, if the amount has been refunded after three months from the date of receipt of the application. Having regard to the facts and circumstances, of the present case, we are not impressed with the argument of learned counsel for the petitioner that the petitioner is entitled for interest on interest - Decided partly in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... e application. It does not depend upon the claim and can not be denied on the ground of waiver of the claim of interest by the party. Thus, even though the petitioner has written a letter for not claiming the interest, the claim of interest can not be denied under Section 11BB of the Act as it is mandatory and payable automatically. Reliance is placed on the circular no.670/61/2002-CX, dated 01.10.2002. The decision of the Apex Court in the case of Ranbaxy Laboratories Ltd. Vs. Union of India, reported in 2011 (273) ELT, 3 (SC). The Division Bench decision of this Court in the case of Aroma Chemicals Vs. Union of India, reported in 2013 (298) ELT, 41 (All). He further submitted that for the illegal withholding of the amount of interest, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate immediately after the expiry of three months from the date of receipt of such application till the date of refund of such duty: Provided that where any duty ordered to be refunded under sub-section (2) of section 11B in respect of an application under sub-section (1) of that section made before the date on which the Finance Bill, 1995 receives the assent of the President, is not refunded within three months from such date, there shall be paid to the applicant interest under this section from the date immediately after three months from such date, till the date of refund of such duty. Explanation - Where any order of refund is made by the Commissioner (Appeals), Appellate Tribunal [National Tax Tribunal] or any court against an order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Circular No.398/31/98-CX, dated 2-6-98[1998 (100) E.L.T. T16] wherein Board has directed that responsibility should be fixed for not disposing of the refund/rebate claims within three months from the date of receipt of application. Accordingly, jurisdictional Commissioners may devise a suitable monitoring mechanism to ensure timely disposal of refund/rebate claims. Whereas all necessary action should be taken to ensure that no interest liability is attracted, should the liability arise, the legal provision for the payment of interest should be scrupulously followed." The Apex Court in the case of Ranbaxy Laboratories Ltd. Vs. Union of India, (Supra) has held that Section 11BB of the Act comes into play only after an order for refund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) of Section 11B of the Act and that the said Explanation does not have any bearing or connection with the date from which interest under Section 11BB of the Act becomes payable. In view of the above, we are of the view that the petitioner is entitled for the interest under Section 11BB of the Act on the refunded amount, if the amount has been refunded after three months from the date of receipt of the application. Having regard to the facts and circumstances, of the present case, we are not impressed with the argument of learned counsel for the petitioner that the petitioner is entitled for interest on interest. In the result, the writ petition is allowed in part. The authority concerned is directed to calculate the amount of interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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