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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 ..... 3.11.2015 appellant only informed the Jurisdictional Deputy Commissioner that CESTAT has passed order in their favour and accordingly to sanction the refund amount along with interest. As per the statutory mandate of Section 11BB of the Act 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. In the present matter the time limit for payment of the refund amount to the Appellant by the Central Excise authorities (without interest) expired on 19-08-2005. Since, claimed amount was finally paid to the Appellant on 04.04.2016, the Appellant is entitled for the statutory interest from 20-8-2005 to the date when the refund was eventual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal authority vide Order-In-Original both Dated. 04.08.2008. Being aggrieved, appellant filed appeal before the Commissioner (Appeals), Vapi, who vide Order-In-Appeal dated 28.12.2007 upheld the impugned order. Against the said Order-In-Appeal appellant filed appeal before the CESTAT and vide final order dated 08.05.2015 tribunal set aside the impugned orders and held that the appellant is eligible for the refund of unutilized balance in PLA. 3. Consequent upon the Tribunal s final order the appellant vide letter dated. 23.11.2015 requested the department to sanction the refund claims of Rs.35,00,000/- 15,00,000/- along with interest. The Adjudicating authority sanctioned both the refund claims without interest and conditionally, subje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of India 2013(289)ELT 429 (Guj) Shri Jagdamba Polymers Ltd. Vs. Union of India 2014 (305)ELT 396 (Bom) Union of India Vs. Jindal Drugs Ltd. 2016 (334)ELT 133 (Tri. Ahmd.) Tata Chemicals Ltd. Vs. Commissioner of C.Ex., Rajkot 4.1. He also submits that CBEC has issued Circular No. 130/41/95-CX dated 30.05.1995 and clarified that department is liable for payment of interest on various types of refund claims not processed within 3 months from the date of receipt of refund claim. The instructions provide in said circular for payment of interest on delayed sanction of refund claims also covers refund of PLA balance. 4.2. He further submits that the Appellant authority failed to consider that the Assistant Commissioner wron ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed only vide order-in-original both dated 04.04.2016. We also noticed that in the present matter both the adjudicating authority considered the letter dated 23.11.2015 as refund claim application, whereas vide letter dated 23.11.2015 appellant only informed the Jurisdictional Deputy Commissioner that CESTAT has passed order in their favour and accordingly to sanction the refund amount along with interest. 7. The Section 11BB deals with interest on delayed refunds which reads as under :- 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 s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application, there would be no liability to pay interest. However, if the refund is granted after the expiry of the period of three months from the date of receipt of the application, then interest would also be payable on the amount of refund granted, from the date immediately after the expiry of three months from the date of receipt of such application, till the date of refund. 8. As per the statutory mandate of Section 11BB of the Act 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. In the present matter the time limit for payment of the refund amount to the Appellant by the Central Excise authorities (without interest) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 has nothing to do with the postponement of the date from which interest becomes payable under Section 11BB of the Act. Manifestly, interest under Section 11BB of the Act becomes payable, if on an expiry of a period of three months from the dat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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