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2022 (12) TMI 974 - HC - Central ExciseInterest on delayed refunds - inordinate delay and latches on the part of the respondent in not processing the refund claims of the petitioner within the prescribed period of three months from the date of receipt of the applications of the petitioner as contemplated under Section 11-BB of the Central Excise Act, 1944 - HELD THAT:- The question with regard to payment of interest on delayed refunds sanctioned beyond the prescribed period of three months from the date of receipt of an application is no longer res-integra in view of the judgments of the judgments of the Apex Court, this Court and other High Courts - Reliance can be placed in the case of M/S. DEE KAY EXPORTS THROUGH ITS PARTNER SH. BALJINDER SINGH, 24, INDUSTRIAL ESTATE, YAMUNA NAGAR (HARYANA) VERSUS UNION OF INDIA AND OTHERS [2019 (11) TMI 244 - PUNJAB AND HARYANA HIGH COURT], where it was held that 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. It is clear that in the instant case, in the light of the undisputed fact that the respondent has not sanctioned refund within the prescribed period of three months from the date of submission of the refund request by the petitioner, the respondent would be liable to pay interest in favour of the petitioner on the amounts ordered to be refunded in favour of the petitioner - In the instant case, it is an undisputed fact that the respondent did not pass the refund sanction order within the prescribed period of three months and the delay on the part of the respondent in not passing the refund sanction order cannot be attributed or attributable to the petitioner, particularly when the adjudicatory process had to be mandatorily completed within the period of three months. It is significant to note that merely because there were certain deficiencies/lacunae in the refund claim by the petitioner, the said circumstance cannot be relied upon nor made the basis by the respondent in order to contend that it was entitled to pass the refund sanction order beyond the prescribed statutory period of three months. The respondent completely misdirected itself in coming to the erroneous conclusion that the period of three months would start running from the date of the final submission made by the petitioner and not from the date of submission of the refund claim and this finding, which is not only contrary to the provisions of Section 11-B and 11-BB of the said Act of 1944, but also the circular dated 01.10.2002 - Petition allowed.
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