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2021 (9) TMI 22 - AT - Central ExciseDelay in the processing of refund claims filed by the Appellants - N/N. 33/1999 - grant of interest on account of delayed grant of refund - Section 11BB of the Central Excise Act - relevant date for claiming interest - whether the period of three months is to be reckoned from the date of the order sanctioning the refund or from the date of the application seeking refund? Whether there was any delay in the processing of refund claims filed by the Appellants under N/N. 33/1999?- HELD THAT:- Since the claim for refund/exemption filed by the Appellants in 2008 was eventually adjudicated in favour of the Appellants in 2019, it is evident that there was a delay in the processing of the refund in favour of the Appellants. The Original Authority and the Appellate Authority have proceeded on the premise that the communication dated 27 February 2019 is a claim for refund, which is factually incorrect - The said communication dated 27 February 2019 by the Appellants is only forwarding and inviting the attention of the jurisdictional refund sanctioning authority to the Final Order dated 9 July 2018 passed by this Tribunal and cannot be construed as a fresh claim. If there was a delay whether the Appellants are entitled to claim for interest under Section 11BB of the Central Excise Act? - HELD THAT:- The said issue has already been decided in favour of the assessee and against the revenue by the Hon’ble Guwahati High Court in the case of Amalgamated Plantations [2013 (11) TMI 589 - GAUHATI HIGH COURT] where it was held that Petitioners, should, therefore be entitled to interest under Section 11BB of the Central Excise Act, 1944 on the excise duty refunded to them. The jurisdictional excise officers shall now determine the interest amount payable to the petitioners for the relevant periods. The amount found due shall be paid to the petitioners within three months from today. If the provisions of Section 11BB are applicable to the facts of the present case whether the period of three months is to be reckoned from the date of the order sanctioning the refund or from the date of the application seeking refund? - HELD THAT:- It is settled by the decision of the Hon’ble Supreme Court in Ranbaxy Laboratories case [2011 (10) TMI 16 - SUPREME COURT] that the said period has to be reckoned from the date of the application for exemption/refund, which in the instant case is 10 January 2008, and not the date of the adjudication or appellate order sanctioning the refund - The learned Appellate Commissioner completely misdirected himself in inviting reference to Section 11B(5)(B)(ec) of the Act dealing with the relevant date in the context of refund claims, which has no manner of application in determining the Appellants eligibility to claim for interest required to be ascertained in terms of Section 11BB of the Act. Appeal allowed - decided in favor of appellant.
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