2022 (11) TMI 1124 - HC - Central Excise
Interest on delayed refund - time limitation - whether there exists any liability of the revenue to pay interest under Section 11BB of the Act and whether it commences from the date of expiry of three months from the date of receipt of application for refund or on the expiry of the said period from the date on which the order of refund is made? - Section 11BB of the Central Excise Act 1944 - HELD THAT:- The present controversy is squarely covered by the judgment of the Supreme Court in Ranbaxy Laboratories Ltd [2011 (10) TMI 16 - SUPREME COURT]. The language of Section 11BB is plain and unambiguous. It casts a duty on the respondents to pay the interest on delayed refunds, if refund is not made within three months from the date of receipt of application under Sub Section 1 of the relevant Section. Indisputably, the said application was filed by the petitioner on 3.9.2014 (Annexure P-2).
There are no merit in the singular objection raised by learned counsel for the respondents that upon passing the order of refund, the competent authority became functus officio - the Statute makes it obligatory for the respondents to pay the interest on delayed payment and, therefore, if respondents have chosen to undertake an exercise partially by only refunding the amount without interest, they cannot wriggle out from their statutory responsibility to pay the interest.
The respondents shall now determine the amount of interest payable to the petitioner under Section 11BB of the Act in the light of Section 11BB of the Act as interpreted by the Supreme Court in Ranbaxy Laboratories Ltd and after calculating the amount of interest shall pay the same to the petitioner within eight weeks from the date of communication of this order - petition allowed.