2023 (2) TMI 69 - AT - Service Tax

Interest on refund already sanctioned - Calculation of relevant time - entitlement for the interest after expiry of three months from the date of filing refund claim which in the present case is 13.06.2011 - HELD THAT:- The learned Commissioner (Appeals) has gravely erred in misinterpreting the overall provision and clarification of board circular. The provision of Section 11BB is very clear, according to which the claimant shall be entitled for the interest after expiry of three months from the date of refund application - In the present case, the refund application was admittedly filed on 13.06.2011 and it is this case which was under litigation up to the tribunal and subsequently, the appellant succeeded in this refund case only. In this case, the refund application was filed on 13.06.2011 shall be treated as refund application as mentioned under Section 11BB.

The appellant stand entitled for the refund right from the date of application i.e. 13.06.2011 accordingly, the appellant is legally entitled for the interest after the expiry of three months from the date of refund application i.e. 13.06.2011 - The judgment of Hon’ble Supreme Court in the case of RANBAXY LABORATORIES LTD. VERSUS UNION OF INDIA AND ORS. [2011 (10) TMI 16 - SUPREME COURT] is directly applicable in the facts of the present case, where it was held that 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.

There are no ambiguity on the position that if the refund is not sanctioned within three months from the date of filing, the appellant is entitled for the interest on the refund sanctioned - also, in the present case also the appellant is legally entitled for the interest on refund.

Appeal allowed.