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2019 (11) TMI 244 - HC - Central ExciseInterest on Refund - Section 11BB of the Central Excise Act, 1944 - time limitation - respondent contended that interest was paid within three (03) months from the date of order passed by the Tribunal, thus department is not liable to pay interest - HELD THAT:- As per Section 11BB of the Central Excise Act, 1944, if duty is not refunded within three (03) months from the date of application, applicant is entitled to interest. In the present matter, refund application was filed on 03.09.2009 which was rejected and the petitioner unsuccessfully assailed said order before Commissioner (A). The petitioner filed further appeal before the Tribunal which vide order dated 21.02.2018 (Annexure P-3) allowed appeal of the petitioner and accordingly, the respondent sanctioned refund on 27.09.2018. Hon'ble Supreme Court in the case Ranbaxy Laboratories Ltd. Versus Union of India, [2011 (10) TMI 16 - SUPREME COURT] has clearly held that interest is payable from the expiry of three months from the date of filing refund application and not from the date of favourable order of Appellate Authority. From the reading of Section 11BB, it is quite apparent that liability of interest relates back to date of filing application and not date of order passed by one or another authority. As the respondents failed to sanction refund within three (03) months from the date of application, thus they are liable to pay interest for the delayed period - In the present case, refund application was filed on 03.09.2009 (P-1) which was rejected by the respondent vide order dated 30.04.2010. The refund was ultimately sanctioned on 27.09.2018 when the Tribunal allowed appeal of the petitioner, thus, respondents are liable to pay interest w.e.f. expiry of three (03) months from 03.09.2009. The respondents are hereby directed to pay interest at prescribed rate within one (01) month from the date of receipt of certified copy of this order, failing which the Sanctioning/Competent Officer shall be liable to pay interest @ 6% on the amount due from his/her own pocket, apart from liable to be hauled up in contempt proceedings - petition allowed.
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