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2019 (3) TMI 153 - AT - Service TaxGrant of Interest u/s 11BB of Central Excise Act, 1944 - whether the Department is liable to pay the interest on the amount of refund sanctioned? - Held that:- The Hon’ble Apex Court in the case of Ranbaxy Laboratories vs. Union of India & ORS [2011 (10) TMI 16 - SUPREME COURT OF INDIA] clarified that the Boards own Notification dated 1/10/2002 has given a clear direction to the Department in case claims of non payment of interest in refund/rebate cases clarifying that the authority has not to wait for any order specifically payment of interest. The moment department becomes liable under Section 11 BB the consequence of payment of interest shall follow. The above adjudication is very much binding on this Tribunal. The Explanation to Section 11 BB further clarifies the controversy which says that where any order of refund is made by Commissioner (Appeals) Appellate Tribunal, National Tax Tribunal or any Court against the an order of Assistance Commissioner of Central Excise under sub-Section 2 of Section 11 B, the order passed by the Commissioner(Appeals), Appellate Tribunal or as the case may be shall be deemed to be an order passed under the sub-section 2 of the sub-Section B for the purposes of this Section - the application as has been referred in Section 11 B sub-Section 1 only has to be considered for the purposes of Section 11BB - In the present case the order of this Tribunal dated 4th August 2017, in view of the said explanation, reverts back to stage of order of the Assistant Commissioner. The refund dated 17.2.16 is much beyond 3 months of the date of initial order. The Department is liable to pay the interest. The Department has once sanctioned it but later denied while reviewing - appeal allowed - decided in favor of appellant.
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