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2022 (4) TMI 474 - AT - Central ExciseGrant of interest in respect of the refund claim already granted - interest rejected on the ground that since, the refund claim was granted within 3 months from the date of the Commissioner (Appeals) order, no interest is payable - Section 11BB of Central Excise Act - HELD THAT:- There is no dispute in the fact that the appellant had filed a refund claim on 11.06.2018 which was though rejected by the original authority but allowed by the Commissioner (Appeals) - From the plain reading of Section 11BB, it is clear that under any circumstances the refund should be disposed of within a period of three months and if there is delay after three months from the date of filing application, the assessee shall be entitled for interest from the date after three months up till the date of sanction of refund. Reliance placed in the case of UNION OF INDIA & OTHERS VERSUS M/S HAMDARD (WAQF) LABORATORIES [2016 (3) TMI 68 - SUPREME COURT] where it was held that the principle laid down in Ranbaxy Laboratories Limited (2011 (10) TMI 16 - Supreme Court of India ) wherein held 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 of refund is made would apply on all fours to the case at hand. Thus, if there is any delay in sanction of the refund claim from the date of filing application, the appellant is entitled for the interest from the date of filing of refund claim till the date of sanction. Revenue’s contention is that they have granted the refund within three months form the date of Commissioner (Appeals) order - it can be concluded that once the Commissioner (Appeals) has allowed the refund, the appellant was entitled for the refund right from the date of filing of the application. Therefore, for the purpose of interest, it is not the date of Commissioner (Appeals) order, but it is the date of filing of refund application needs to be taken. The appellant is entitled for the interest on the refund - Appeal allowed - decided in favor of appellant.
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