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TMI Blog2021 (6) TMI 462X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant claimant within three months from the date of such application or in the case governed by proviso to Section 11BB, non-payment within three months from the date of the commencement of Section 11BB brings in the starting point of liability to pay interest, notwithstanding the date on which decision has been rendered by the competent authority as to whether the amount is to be transferred to Welfare Fund or to be paid to the applicant needs no interference. Circular 398/31/98 dated 2.6.1998 has also been appraised wherein the Board has directed that the responsibility should be fixed for not dispensing for refund /rebate claims within three months from the date of receipt of application. The Board stressed with the provision of section 11BB of Central Excise Act 1944 are attracted automatically for no refund sanction beyond the period of three months hence the jurisdictional Central Excise officer were directed to not to wait of instructions from any superior officer and to ensure that no interest liability is attracted - In the present case such application is the one as was filed on 24.6.2006 which was the first application filed under section 11B(1) of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017. However, the amount was got adjusted in Government dues in respect of demand pending against Order-in-Original No. 263/06 dated 8.12.06. In consequence thereto to High Court of Rajasthan decision dated 13.10.2017, the appellant filed the refund claim of ₹ 3,17,591/- (224624 +60000 + 32967) along with interest on 11.12.2017. The Deputy Commissioner Kota vide Order-in-Original No. 12/18 dated 09.03.2018 sanctioned the refund claim of ₹ 284624/- (224624 +60,000) under section 11 B of Central Excise Act and paid the same in cash through Bank account. The order also sanctioned the refund of ₹ 32967/- but credited the same into consumer welfare fund. However, the claim of interest on the amount of refund was rejected. The said rejection was assailed before Commissioner (Appeal), who has sanctioned the interest on the refund claim, however with effect from 28.4.2013 with respect of amount of ₹ 2,24,624/- and with effect from 10.3.2018 with respect to amount of ₹ 32,967/-. Being aggrieved thereof the impugned appeal has been filed praying for calculation of interest with effect from the date when first refund claim i.e. 20.6.2006 filed. 2. I have hear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. Section 11B of the Act deals with claims for refund of duty. Relevant portion thereof reads as under : 11B. Claim for refund of duty. (1) Any person claiming refund of any duty of excise and interest, if any, paid on such duty may make an application for refund of such duty and interest if any, paid on such duty to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise before the expiry of one year from the relevant date in such form and manner as may be prescribed and the application shall be accompanied by such documentary or other evidence including the documents referred to in section 12A as the applicant may furnish to establish that the amount of duty of excise and interest, if any, paid on such duty in relation to which such refund is claimed was collected from or paid by him and the incidence of such duty and interest if any, paid on such duty had not been passed on by him to any other person : Provided that where an application for refund has been made before the commencement of the Central Excises and Customs Laws (Amendment) Act, 1991, such application shall be deemed to have been made under this sub-section as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Appellate Tribunal of any Court in any other provision of this Act or the rules made thereunder or any other law for the time being in force, no refund shall be made except as provided in sub-section (2). (4) (5) Section 11BB, the pivotal provision, reads thus : 11BB. Interest on delayed refunds. - If any duty ordered to be refunded under sub-section (2) of section 11B to any applicant is not refunded within three months from the date of receipt of application under sub-section (1) of that section, there shall be paid to that applicant interest at such rate, 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 : 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 ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed. (Emphasis supplied) 8. Thus, ever since Section 11BB was inserted in the Act with effect from 26th May 1995, the department has maintained a consistent stand about its interpretation. Explaining the intent, import and the manner in which it is to be implemented, the Circulars clearly state that the relevant date in this regard is the expiry of three months from the date of receipt of the application under Section 11B(1) of the Act. 9. A close reading of Section 11BB, which now governs the question relating to payment of interest on belated payment of interest, makes it clear that relevant date for the purpose of determining the liability to pay interest is not the determination under subsection (2) of Section 11B to refund the amount to the applicant and not to be transferred to the Consumer Welfare Fund but the relevant date is to be determined with reference to date of application laying claim to refund. The non-payment of refund to the applicant claimant within three months from the date of such application or in the case governed by proviso to Section 11BB, non-payment within three months from the date of the commencement of Section 11BB brings in the starting p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date of receipt of refund application up to the date of dispatch of cheque for refund. 13. Circular 398/31/98 dated 2.6.1998 has also been appraised wherein the Board has directed that the responsibility should be fixed for not dispensing for refund /rebate claims within three months from the date of receipt of application. The Board stressed with the provision of section 11BB of Central Excise Act 1944 are attracted automatically for no refund sanction beyond the period of three months hence the jurisdictional Central Excise officer were directed to not to wait of instructions from any superior officer and to ensure that no interest liability is attracted. It was also clarified in the circular that the department has maintained the consistent stand about the interpretation of section 11BB since it stand inserted in the Act with effect from 26.5.1995. It is held in the circular that explaining the intent merit and the manner under which the section is to be implemented. It is stated that the relevant date in this regard is the expiry of three months from the date of receipt of application under section 11 BB (1) of the Act. 14. In the present case such application is the one ..... X X X X Extracts X X X X X X X X Extracts X X X X
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