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2021 (10) TMI 847 - CESTAT NEW DELHIDelay in sanction of interest on interest - Applicability of time limitation - whether the delay in sanction of interest on interest beyond the three months, comes within the purview of section 11BB? - HELD THAT:- It is apparent that the issue has been decided by Hon’ble High Court of Gujarat in favour of the assessee. The issue is no more res integra and stand settled by the Apex Court in the case of Ranbaxy Laboratories Ltd. [2011 (10) TMI 16 - SUPREME COURT]. Perusal of the decision makes it abundantly clear that what is payable under section 11AB is the interest on the expiry of period of three months from the date of receipt of application for the refund the amount which is still not refunded. The sanction of refund of interest on the interest amount has been allowed for this decision only for the reason that the demand has caused unnecessary delay even while sanctioning the claim of refund of duty. There is no delay of sanction of refund of ₹ 37,75,854/- as was paid under Rule 18A as discussed above, the said claim of ₹ 66,01,485/-. was sanctioned within the period of 3 months as is required under section 11B. The interest thereupon has already been sanctioned as is required under section 11BB - there are no infirmity with the findings of the Commissioner (Appeals) - appeal dismissed.
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