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2020 (2) TMI 752 - AT - Central ExciseInterest on delayed refund - area based exemption - section 11BB of CEA - Board’s Circular 682/73/2002-CX dated 19.12.2002, as amended vide 842/19/2006-CX dated 08.12.2006 - It is the case of the Revenue that in view of the explicit instruction of the CBIC that the refunds under exemption Notification are different from the Refunds under Section 11B, interest under Section 11BB is not payable. HELD THAT:- The circular No. 842/19/2006-CX dt. 08/12/2006, indeed clarifies that no interest under Section 11BB is payable on any refund arising out of Area Based Exemption Notification. However, we find that the Hon’ble High Court of Gauhati in the case of AMALGAMATED PLANTATIONS (P) LTD. VERSUS UNION OF INDIA [2013 (11) TMI 589 - GAUHATI HIGH COURT] has held that there was no distinction between refund under Area Based Exemption Notification and other refunds under Section 11B and interest under 11BB is payable on such refunds. The settled legal position as on today is that interest is payable under Section 11BB in respect of refunds sanctioned as per Area Based Exemption Notification - the impugned Order has correctly sanctioned interest on the refunds and there is no infirmity in the same - Appeal dismissed - decided against Revenue.
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