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TMI Blog2015 (10) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... to the appellants as per provisions of Section 11BB of the Central Excise Act, 1944, for the period of delay as mentioned above. - Decided against the revenue. - Appeal No. E/89809/14 - - - Dated:- 15-5-2015 - Ramesh Nair, Member (J), J. For the Appellant : Shri Sanjay Hasija, Superintendent (AR) For the Respondent : Shri J N Tiwari, Adv ORDER Per: Ramesh Nair: Revenue's appeal is directed against Order-in-Appeal No. PD/606/Th-II/2014 dtd. 19/6/2014 passed by the Commissioner of Central Excise Service Tax (Appeals-IV), Mumbai-I, wherein the Ld. Commissioner (Appeals) has allowed the appeal of the appellant directing the department to pay interest on refund amount sanctioned as per the provision 11B of Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Revenue, he submits that time period for processing refund application is provided under statute is three months and within the three months all the aspect must be verified by the Revenue and the refund application should be disposed of within such stipulated time period. If at all any information is required, the same can be asked for and verified within the such given time. On this ground Revenue can not escape from payment of interest which otherwise legitimately available to the respondent. He further submits that even though the matter was remanded by the Tribunal but fact remains that after all the litigation once refund is legally sanctionable to the respondent interest to be paid in terms of Section 11BB after three months from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [not below five per cent] and not exceeding thirty per cent per annum as is for the time being fixed [by the Central Government, by notification in the Official Gazette], on such duty from the date immediately after the expiry of three months from the date of receipt of such application 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 other court against and order of the [Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise], under sub-section (2) of section 11B, the order passed by the Commissioner (Appeals), Appellate Tribunal, [National Tax Tribunal] or, as the case may be, by the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons from any superior officers or to look for instructions in the orders of higher appellate authority for grant of interest.' 10. I find that vide said Circular it has been clarified that the provisions of Section 11BB of the said Act are attracted automatically for any refund sanctioned beyond a period of three months. I also find that the said circular is binding on the department being in the form of instructions as has been settled by the Apex Court vide judgment passed in the case of M/s. Paper Products Ltd., Commissioner C.Ex. Vide para No. 4 and 5 of the said judgment it has been laid down that the Circular/s issued by the Board are binding on the department and the department cannot take contrary stand. 11. I find that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I find that vide above said Judgment and order it has been settled that as per provisions of Section 11BB of the said Act the department is obliged to pay interest to the claimant from the expiry of three months after the date of making an application. 15. IN view of the above findings, I hold that provisions of Section 11BB of the said Act are applicable to this case and the department is obliged to pay interest, at the rate notified by the Central Government, to the appellants for the period from expiry of three months from the date of refund application till the date on which the refund was actually paid to them as detailed below. Amount of Refund claim sanctioned (RS) Date of submission of refund a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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