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2012 (12) TMI 967 - CGOVT - Central ExciseDenial of rebate claim - benefit of exemption under Notification No. 56/2002-C.E., dated 14-11-2002 - Interest on delayed refund claim - Held that:- Rule 18 of Central Excise Rules, 2002 was amended retrospectively w.e.f. 1-3-2002 to 7-12-2006 vide Section 88 of Finance Act, 2008 allowing rebate of duty paid on excisable exported goods for that portion of duty for which refund has been granted in terms of area based exemption notification to the manufacturer. The said amendment in Rule 18, make such rebate claims admissible during the period 1-3-2002 to 7-12-2006. Government observes that the retrospective validation of admissibility of rebate claims, made the claimant entitled for said rebate claim during the relevant period. The said amendment has not put any bar on payment of interest in terms of Section 11BB for delayed payment of said refund claims. So the time limit provided under Section 11BB for the purpose of computing interest liability has to be adhered to. Interest liability arises when any duty ordered to be refunded under Section 11B(2) is not refunded within three months from the date of receipt of application under Section 11B(1). Since the said amendment has not put any restriction on the payment of interest in terms of Section 11BB, the argument of department that interest will arise after three months of amendment, does not hold good. - interest under Section 11BB becomes payable on the expiry of three months from the date of receipt of the application under sub-section (1) of Section 11B of the Act and any explanation/reasons due to which the delay occurred, will not have any bearing upon the said legal position. Therefore, Government finds no infirmity in the impugned order-in-appeal and upholds the same. - Decided against Revenue.
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