TMI Blog2020 (2) TMI 752X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - Ex. Appeal No. 600 of 2012 - FO/75220/2020 - Dated:- 27-1-2020 - HON BLE MR. P. K. CHOUDHARY, MEMBER (JUDICIAL) AND HON ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the refund of the duty paid along with interest under Section 11BB of the Central Excise Act, 1944. Revenue is aggrieved only to the extent that the interest has been sanctioned to the Respondent assesee. It is the case of the Revenue that interest under Section 11BB is payable only in case of refunds of excess duty paid under Section 11B and is not applicable in case of refund of duty as per exemption Notification. Ld. Departmental Representative points out that this issues was clarified by the CBIC Circular No.670/61/2002-CX dt. 01/10/2002 as modified by Circular No.842/19/2006-CX dt. 08/12/2006 which reads as follows:- Kind attention is invited to Circular 682/73/2002, dated 19-12-2002 [2003 (151) E.L.T. T7], issued by the TRU in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Plantations (P) Ltd. 2013 (296) ELT 13 (Gau.) 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. Paras 25 to 33 of this Judgment are reproduced below:- 25. Before we proceed further, relevant portion of the notification dated 8-7-1999 may be looked into. As has already been noticed earlier, the said notification has been issued amongst others in exercise of the powers conferred by sub-section (1) of Section 5A of the Central Excise Act, 1944. The exemption provided by the said notification is given effect to in the following manner - (i) the manufacturer shall submit a statement of the duty paid to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) of Section 11B, if on receipt of any such application, the Assistant Commissioner is satisfied that the whole or any part of the duty of excise paid by the applicant is refundable, he may make an order accordingly. 28. Under Section 11BB of the Central Excise Act, 1944, if any duty ordered to be refunded under sub-section (2) of Section 11B to any applicant is not refunded within three months from the date of receipt of application under sub-section (1) of that section, there shall be paid to that applicant interest at such rate which may be fixed by the Central Board of Excise and Customs on such duty from the date immediately after the expiry of three months from the date of receipt of such application till the date of refund of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anctioned beyond a period of three months. Hon ble Supreme Court has held that liability of the Revenue to pay interest under Section 11BB commences from the date of expiry of three months from the date of receipt of application for refund under Section 11B(1) and not on the expiry of the said period from the date on which the order of refund is made. 31. We also find that a Single Bench of this Court in 2004 (171) E.L.T. 458 (Hindustan Coca-Cola Beverages Pvt. Ltd. v. Union of India) while directing refund of excise duty paid in terms of notification dated 8-7- 1999, had also directed payment of interest for delayed payment as per provision of Section 11 of the Central Excise Act, 1944. 32. Thus, in view of the discussions made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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