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TMI Blog2022 (6) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... of the present case are that the central excise officers visited the factory premises of the Appellant and found that Appellant had wrongly availed the exemption Notification No. 214/86 CE dated. 25.03.1986 and Appellant were required to pay duty amounting to Rs. 77,99,763/- and Rs.19,25,540/- for such wrong availment. Accordingly, the appellant deposited the amount of Rs. 35,00,000/- and of Rs. 15,00,000/- and credited the same in PLA account for payment of duty. But on ascertaining sufficient balance in Cenvat account, they debited the duty amount from cenvat account. Subsequently, the appellant filed the refund claim for the amount of Rs. 35,00,000/- and Rs. 15,00,000/- deposited in their PLA account lying unutilized due to inverted duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refund orders. The said refund claim which was filed originally on 19.05.2005 was sanctioned on 04.04.2016. As per the provisions of Section 11BB of Central Excise Act, 1944 the department is under legal obligation to sanction the refund claim along with interest after the expiry of 3 months from the date of filing of the refund claim. He placed reliance on the following Judgments:- * 2014(170)ELT 4 - J.K. Cement Works Vs. Assistant Comm. * 2005 (179)ELT A150 (SC)- Asst. Comm Vs. J.K. Cement Work. * 2008 (229)ELT 498 (Bom) CCE Vs. Ballarpur Industries Ltd. * 2009(235)ELT 129 (Tri. Ahmd.) Prime Automation (India) Pvt. Ltd.Vs. Commr. of ST., Ahmedabad. * 2009(236) ELT 526 (Tri. Ahmd.) Commissioner of Central Excise Vs. Olympic Synth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t CBEC under their Circular No. 670/61/2002-CX dated 01.10.2002 has very categorically clarified that wherever refund claim is sanctioned beyond the three month of filing, then refund should be sanctioned with amount of interest payment. 5. On the other hand, Shri. Ghanshyam Soni, Learned Joint Commissioner (Authorized Representative) appearing on behalf of the Revenue reiterates the finding of the impugned order. 6. We have carefully considered the submissions made by both the sides and perused the records, we find that the limited issue involved is that from which date the appellant is entitled for interest on the sanctioned refund. As per the facts of the present case, we find that there is no dispute about the fact that the refund cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case may be, by the Court shall be deemed to be an order passed under the said sub-section (2) for the purposes of this section." This section clearly stipulates that if any duty is ordered to be refunded under sub-section (2) of Section 11B of the Act to the applicant and the same is not refunded within three months from the date of receipt of such application under sub-section (1) of Section 11B of the Act, then the applicant would be entitled to interest. This interest would be payable immediately after the expiry of three months from the date of receipt of such application till the date of refund of the duty. In a nutshell, what this section stipulates is that, once an application for refund has been made and the same is granted withi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s integra in view of the judgment of Hon'ble Supreme Court delivered in the case of M/s. Ranbaxy Laboratories Ltd. v. Union of India, reported in 2011 (273) E.L.T. 3 (S.C.). The relevant paragraph of the said judgment is extracted herein below:- "9........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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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