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2023 (10) TMI 1046 - HC - Central ExciseRelevant date for calculation of interest - interest under Section 11BB of the Central Excise Act, 1944 would accrue from the date of expiry of 3 months from the date of receipt of application for refund (or) on the expiry of 3 months from the date of communication of the order of the Appellate authority / Court? HELD THAT:- This Court finds that the present issue viz., whether the liability of the revenue to pay interest under Section 11BB of the Act would accrue/commence from the date of expiry of 3 months from the date of receipt of application for refund (or) on the expiry of 3 months from the date of the order to the adjudicating authority/ Court stands resolved by the judgment of the Supreme Court in RANBAXY LABORATORIES LTD. VERSUS UNION OF INDIA AND ORS. [2011 (10) TMI 16 - SUPREME COURT] reported in 2011 (273) ELT 3 wherein after finding that the appellant’s claim for rebate of duty was rejected by the Assistant Commissioner and was subsequently allowed in appeal which was affirmed in further appeal before the Joint Secretary, Government of India it was held that It is manifest from the aforeextracted provisions that Section 11-BB of the Act comes into play only after an order for refund has been made under Section 11-B of the Act. Section 11-BB of the Act lays down that in case any duty paid is found refundable and if the duty is not refunded within a period of three months from the date of receipt of the application to be submitted under sub-section (1) of Section 11-B of the Act, then the applicant shall be paid interest at such rate, as may be fixed by the Central Government, on expiry of a period of three months from the date of receipt of the application. The above judgment of the Hon’ble Supreme Court in the case of Ranbaxy has been subsequently followed in the case of MANISHA PHARMO PLAST PVT. LTD. VERSUS UNION OF INDIA [2020 (11) TMI 726 - SUPREME COURT]. Following the above judgments of the Hon’ble Supreme Court, this Court has no hesitation to hold that interest on refund in terms of Section 11 BB of the Act would accrue in the event of delay in grant of refund beyond 3 months from the date of application i.e., 16.11.1994 in the present case. The respondents are directed to calculate the statutory interest in terms of Section 11 BB of the Act i.e., 3 months from 16.11.1994 (date of application for refund) until 20.02.2020 when the refund was actually granted and pay the same within 4 months from the date of receipt of a copy of this order - Petition disposed off.
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