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2019 (6) TMI 1142 - BOMBAY HIGH COURTInterest on delayed refund - time imitation - Section 11BB of Central Excise Act - HELD THAT:- It is an undisputed position that the refund has to be granted under Section 11BB of the Act within a period of 3 months from the date of the application for refund, if the refund is not paid during the stipulated 3 months period, the interest start running. In terms of Section 11BB of the Act, the Revenue was obliged to give interest along with principal amount in terms of Section 11BB of the Act. The fact that the principal amount of ₹ 49.17 lakhs was refunded to the respondent is in appeal before the Hon'ble Supreme Court would not detract from the obligation of the Revenue to comply with the provisions of Section 11BB of the Act in the absence of any stay to the order dated 24th March, 2011 of the Hon'ble Gujarat High Court by the Apex Court. The liability of interest commences after 3 months of the refund application, if the refund is not made within 3 months from the date of application for refund. Thus, it runs along with the principal amount Mere pendency of the appeal before the Apex Court would not justify the Revenue ignoring the statutory provisions of the Act namely Section 11BB of the Act. This it has to comply - It is selfevident position on reading of Section 11BB of the Act that the interest has to be granted if the refund is not made within a period of 3 months from the date of application for refund. The question as proposed does not give rise to any substantial question of law. Thus, not entertained - appeal dismissed.
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