9911796707
TMI Blog2014 (4) TMI 1014X X X X Extracts X X X X X X X X Extracts X X X X ..... . [Sic. Central Excise Act, 1944 ] The petitioner filed some of the refund claims in the year 2005, some in the year 2006 and some in the year 2007. The details of the claim are mentioned in the order of adjudication dated 08.05.2007. The said refund claim has been allowed by order dated 08.07.2007. However, interest on the pending refund claim has been denied in view of the letter dated 26.04.2007, the correct date of letter is 20.04.2007, by which the petitioner has informed that they have decided not to claim the interest against the claim. Learned counsel for the petitioner submitted that out of the total refund claims in respect of some of the refund claims, despite the refund claims being allowed, show cause notices have been issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent that the claim of refund would be allowed expeditiously, within a reasonable period but the same has not been allowed within a reasonable period, inasmuch as subsequently out of the total refund claims, despite being allowed, show cause notices have been issued to withdraw the claim, which is pending consideration. Learned counsel for the respondent submitted that the petitioner has written a letter for not claiming the interest and, therefore, the petitioner is not entitled to claim the interest as the petitioner has waived his right to claim the interest. We have considered the rival submissions. Section 11BB of the Act reads as follows: "Interest on delay refunds.---- If any duty ordered to be refunded under sub-section ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re perusal of Section 11BB of the Act, reveals that the payment of interest is not depended on the claim by the party. It is automatic. In case, if refund is not paid within three months from the date of receipt of the application, the authority concerned is under obligation to pay the interest. In Section 11BB of the Act the word used is "there shall be paid to the applicant." It means that it is not discretionary and has to pay. The payment of interest is statutory and automatically. The waiver of the interest by the party has no relevance and on the said ground payment of interest can not be denied. Circular no.670/61/2002-CX, dated 01.10.2002 reads as follows: "In this connection, Board would like to stress 2. that the provisions of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on expiry of a period of three months from the date of receipt of the application. The Explanation appearing below Proviso to section 11BB introduces a deeming fiction that where the order for refund of duty is not made by the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise but by an Appellate Authority or the Court, then for the purpose of this Section the order made by such higher Appellate Authority or by the Court shall be deemed to be an order made under sub-section (2) of Section 11B of the Act. It is clear that the Explanation has nothing to do with the postponement of the date from which interest becomes payable under Section 11BB of the Act. Manifestly, interest under Section 11BB of the Act becom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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