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TMI Blog2021 (6) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... 11BB of the Central Excise Act, 1944 for claiming the interest for the delay in granting the refund - But the Revenue did not take any action on the application of the appellant and the appellant had to approach the Tribunal for seeking direction to the original authority to dispose of the application and the Tribunal vide its order dt. 23.04.2019 directed the original authority to dispose of the application and thereafter the Revenue again issued a show-cause notice dt. 15.05.2019 to the appellant proposing to reject the demand for interest on the grounds that the original authority does not have the jurisdiction to review or reopen the adjudication order already passed and the appellant had the liberty to file appeal against such adjudication order but he had not filed the same and hence the original authority refused to grant the interest. The Board vide its circular No.670/61/2002-CX dt. 01.10.2002 has also allowed the payment of interest on delayed refund - Further, the entitlement to claim interest on delayed refund is already settled in favour of the assessee by the judgment of the Hon ble Apex Court in the case of RANBAXY LABORATORIES LTD. VERSUS UNION OF INDIA AND ORS. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,381/- but did not grant interest on the delayed refund. Thereafter the appellant filed an application on 23.08.2018 for claiming the interest of ₹ 15,69,669/- under Section 11BB of the Central Excise Act, 1944. The Revenue vide letter dt. 24.10.2018 informed the appellant that no further action lies in the matter as the appellant has not filed any appeal against the Order-in- Appeal No.3/2017 dt. 25.09.2017. Thereafter the appellant approached the Tribunal for appropriate direction to the original authority under Rules 40 and 41 of the CESTAT (Procedure) Rules, 1982 to implement the order of the Tribunal with consequential relief and the Tribunal vide its Miscellaneous Order No.20261-20264/2019 dt. 23.04.2019 directed the original authority to dispose the application pending before him within a period of two weeks after receipt of the certified copy of the order. Thereafter the appellant again wrote a letter to the original authority to comply with the direction of the CESTAT within the time frame but instead of complying with the same, the Revenue issued a show-cause notice dt. 15.05.2019 proposing to deny the interest on the ground that the appellant has not filed the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... settled by the decision of the Apex Court in the case of Ranbaxy Laboratories Ltd. Vs. UOI [2011(273) ELT 3 (SC)] wherein the Hon ble Apex Court had held that the liability of the Revenue to pay interest under Section 11BB commences from the date of expiry of three months from the date of the receipt of the application for refund under Section 11B(1) of the Act and not on the expiry date of the said period from the date on which the order of refund was made. Learned counsel also cited Board s circular No.670/61/2002-CX dt. 01.10.2002- CX wherein also the Board has allowed the payment of interest after the expiry of three months from the date of filing the application of refund. He further submitted that the Circular issued by Board is also binding on the Department. Learned counsel also cited the decision of this Tribunal in the case of Microsoft Global Service Centre India Pvt. Ltd. Vs. CCT [2019-TIOL-808-CESTAT-Bang.] wherein also the Tribunal after following the decision of the Apex Court in Ranbaxy Laboratories Ltd. case, allowed the interest on delayed refund. 4. On the other hand, the learned AR reiterated the findings in the impugned order. 5.1. After considering the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . cited supra wherein the Apex Court in para 9 of the said judgment has observed as under:- 9. It is manifest from the afore-extracted provisions that Section 11BB of the Act comes into play only after an order for refund has been made under Section 11B of the Act. Section 11BB of the Act lays down that in case any duty paid is found refundable and if the duty is not refunded within a period of three months from the date of receipt of the application to be submitted under sub-section (1) of Section 11B of the Act, then the applicant shall be paid interest at such rate, as may be fixed by the Central Government, on expiry of a period of three months from the date of receipt of the application. The Explanation appearing below Proviso to Section 11BB introduces a deeming fiction that where the order for refund of duty is not made by the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise but by an Appellate Authority or the Court, then for the purpose of this Section the order made by such higher Appellate Authority or by the Court shall be deemed to be an order made under sub-section (2) of Section 11B of the Act. It is clear that the Explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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