TMI Blog2019 (9) TMI 832X X X X Extracts X X X X X X X X Extracts X X X X ..... pending on the date of introduction of said Section 11BB, all such refund applications are supposed to be decided within a period of 3 months and if the amount is not refunded, the assessee shall be entitled to interest on the said refund, from the expiry of period of three months till the actual date of payment of such refund amount. The Learned Commissioner (Appeals) has merely rejected the claim of interest on the sole ground that the provisions of Section 11-BB were introduced in the Act only w.e.f. 26 May, 1995 and as the application for refund was made on 29.12.1989, the same would not apply to the said refund application - but in terms of the proviso to said Section 11-BB, the revenues interest liability would start accruing afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the revenue to refund the amount in question by way of filing a letter dated 23.12.2015. The said refund claim was sanctioned to the appellant to the extent of ₹ 10.62 laksh approximately. However, the appellant s claim of interest on the said refund amount was rejected. 3. On matter being further taken up before the Commissioner (Appeals) he observed as under:- 7. I find that based on above listed provisions, interest is payable to the, appellant from the date as prescribed under Section 11-BB of the Central Excise Act, 1944. However, in the instant case the application for the refund was filed on 29.12.1989 and refund was also sanctioned keeping in view the direction issued by the CESTAT vide order d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the provisions of Section 11-BB, we note that proviso to the said Section lays down that where the refund application stands made before the date on which the Finance Bill, 1995 receives the assent of the president and is not refunded within 3 months from such date, the appellant shall be paid interest under the said Section from the date immediately after three months from such date, till the date of refund of such amount. In terms of the said proviso, which applies to all the refund applications pending on the date of introduction of said Section 11-BB, all such refund applications are supposed to be decided within a period of 3 months and if the amount is not refunded, the assessee shall be entitled to interest on the said refund, from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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