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2013 (7) TMI 837 - HC - Central ExciseSection 11BB of the Central Excise Act,1944 -Date from which the Revenue is liable to pay interest on delayed refund of excise duty - Is it from expiry of three months from the date of application for refund under Section 11B (1) or the receiving of assent of the President to the Finance Bill, 1995 in cases covered by proviso to section 11BB or from expiry of three months from the date of actual order of refund under section 11B (2) of the Central Excise Act, 1944 – Held that:- In Ranbaxy Laboratories Ltd. Vs. Union of India reported in 2011(10)TMI 16 – Supreme Court of India, the Apex court has concluded as follows, “liability of the revenue to pay interest under Section 11BB of the Act commences from the date of expiry of three months from the date of receipt of application for refund under section 11B(1) of the Act and not on the expiry of the said period from the date on which order or refund is made." Similar view was expressed in the case JK Cement Works Vs. Asstt. Commissioner of Central Excise & Customs reported in [2004 (2) TMI 78 - HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR]. In the present case , liability to pay interest on delayed refunds starts on expiry of three months from the date application for refund is filed or in cases covered by the proviso to sec.11BB, on expiry of three months from the date Finance Bill, 1995 received the assent of the President and not from the date of passing of actual order for refund under section 11B(2) of the Act - In the instant case, the application for refund was filed on 5.8.1991 and therefore it is a case covered by first proviso to Section 11BB of the Act. Consequently, the petitioner will be entitled to interest after three months from the date the Finance Bill, 1995 received the assent of the President being 26.5.1995. Thus interest is payable to the petitioner from 26.8.1995 till the date of refund – Decided in favor of Assessee.
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