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TMI Blog2017 (8) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... bacco. The assessee claimed interest for delayed payment of refund. The Adjudicating Authority rejected the claim of interest of Rs. 33,53,847.61/- under Section 11BB of the Central Excise Act, 1944. By the impugned order, the Commissioner (Appeals) set aside the Adjudication order and allowed the appeal with consequential relief to the assessee. 2. Heard both sides and perused the appeal records. 3. For the proper appreciation of the case, the relevant portions of the grounds of appeal filed by the Revenue are reproduced below:- "(i) The assessee was granted refund under Area based exemption envisaged under Notification No. 32/99-CE dated 08.07.1999. Therefore, it is not the refund of wrongly paid duty and thus Section 11B of Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Central Excise Act, 1944. The exemption provided by the said notification is given effect to in the following manner - (i) the manufacturer shall submit a statement of the duty paid to the jurisdictional central excise authority by the 7th day of the next month in which the duty has been paid, (ii) the jurisdictional central excise authority, after verification, shall refund the amount of duty paid during the month under consideration to the manufacturer by the 15th day of the next month, (iii) if there is likely to be any delay in the verification, the jurisdictional central excise authority shall refund the amount on provisional basis by the 15th day of the next month to the month under consideration and, thereafter, may adjust t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of Excise and Customs 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. 29. From a conjoint reading of Sections 11B and 11BB of the Central Excise Act, 1944, it is apparent that if any refund of excise duty is ordered under Section 11B(2), the same has to be refunded within three months from the date of receipt of application under sub-section (1) of that section, failing which interest will have to be paid. Language of Section 11B is very clear and unambiguous. It speaks of claiming refund of any (emphasis ours) duty of excise. No exception is provided. It does not distinguish or differentiate between any kind of excise duty refund, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of interest for delayed payment as per provision of Section 11 of the Central Excise Act, 1944. 32. Thus, in view of the discussions made above, we are of the unhesitant view that Section 11B of the Central Excise Act, 1944 does not exclude claim of refund made in terms of the notification dated 8-7-1999. Petitioners would, therefore, be entitled to interest under Section 11BB of the Central Excise Act, 1944 on the excise duty refunded to them. The jurisdictional excise officers shall now determine the interest amount payable to the petitioners for the relevant periods. The amounts found due shall be paid to the petitioners within three months from today." 5. The revenue filed appeal before the Hon'ble Supreme Court against the or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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