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TMI Blog2022 (11) TMI 1124X X X X Extracts X X X X X X X X Extracts X X X X ..... 0) TMI 16 - SUPREME COURT] . The language of Section 11BB is plain and unambiguous. It casts a duty on the respondents to pay the interest on delayed refunds, if refund is not made within three months from the date of receipt of application under Sub Section 1 of the relevant Section. Indisputably, the said application was filed by the petitioner on 3.9.2014 (Annexure P-2). There are no merit in the singular objection raised by learned counsel for the respondents that upon passing the order of refund, the competent authority became functus officio - the Statute makes it obligatory for the respondents to pay the interest on delayed payment and, therefore, if respondents have chosen to undertake an exercise partially by only refunding th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th learned counsel for the petitioner assisted by Shri Akshay Sapre shown his interest only for getting interest on the said refund. By taking this court to Section 11BB of the Central Excise Act 1944, (in short 'the Act'), which deals with 'interest on delayed refunds', it is contended that the plain language of Statute makes it clear that if any amount is directed to be refunded is not refunded within three months from the date of receipt of application under Sub Section 1 of that Section, the applicant shall be paid interest at such rates fixed by the Statute. It is contended that the relevant application was filed by the petitioner way back on 3.9.2014 (Annexure P-2) whereas the respondents paid the refund only on 5.8. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 subsection (2) of Section 11-B in respect of an application under subsection (1) of that section made before the date on which the Finance Bill, 1995 receives the assent of the President, is not refunded within three months from such date, there shall be paid to the applicant interest under this section from the date immediately after three months fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning 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 11-B(1) of the Act. 13 . We, thus find substance in the contention of the learned counsel for the assessee that in fact the issue stands concluded by the decision of this Court in U.P. Twiga Fiber Glass Ltd. [(2009) 243 ELT A-27 (SC)] In the said case, while dismissing the special leave petition filed by the Revenue and putting its seal of approval on the decision of the Allahabad High Court, this Court had observed as under: Heard both the parties. In our view the law laid down by the Rajasthan High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 11-BB of the Act is concerned, emphasis has been laid on the date of receipt of application for refund. In that case, having noted that the application by the assessee requesting for refund, was filed before the Assistant Commissioner on 12-1-2004, the Court directed payment of statutory interest under the said section from 12-4-2004 i.e. after the expiry of a period of three months from the date of receipt of the application. Thus, the said decision is of no avail to the Revenue. 15. In view of the above analysis, our answer to the question formulated in para 1 supra is that the liability of the Revenue to pay interest under Section 11-BB of the Act commences from the date of expiry of three months from the date of receipt of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other). The Statute makes it obligatory for the respondents to pay the interest on delayed payment and, therefore, if respondents have chosen to undertake an exercise partially by only refunding the amount without interest, they cannot wriggle out from their statutory responsibility to pay the interest. 12. As a consequence, the petition is allowed . The respondents shall now determine the amount of interest payable to the petitioner under Section 11BB of the Act in the light of Section 11BB of the Act as interpreted by the Supreme Court in Ranbaxy Laboratories Ltd (supra) and after calculating the amount of interest shall pay the same to the petitioner within eight weeks from the date of communication of this order. 13. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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