TMI Blog2022 (4) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... fter three months from the date of filing application, the assessee shall be entitled for interest from the date after three months up till the date of sanction of refund. Reliance placed in the case of UNION OF INDIA OTHERS VERSUS M/S HAMDARD (WAQF) LABORATORIES [ 2016 (3) TMI 68 - SUPREME COURT] where it was held that the principle laid down in Ranbaxy Laboratories Limited (2011 (10) TMI 16 - Supreme Court of India ) wherein held liability of the revenue to pay interest under Section 11BB of the Act commences from the date of expiry of three months from the date of receipt of application for refund under Section 11B(1) of the Act and not on the expiry of the said period from the date on which order of refund is made would apply on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it from Cenvat account, thereafter, they claimed refund of the said reversal on the belief they were not supposed to reverse the credit. The appellant filed a refund claim on 11.06.2018 which was rejected and subsequently Commissioner (Appeals) allowed the refund claim. Thereafter, the appellant approached the department by way of a letter with reference to their earlier refund claim filed on 11.06.2018, the department has sanctioned the refund claim on 14.06.2018. The appellant being of bonafide belief that they are entitled for the interest from the three months after the filing of refund claim, the claimed the interest, which was rejected on the ground that since, the refund claim was granted within 3 months from the date of the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. I find that there is no dispute in the fact that the appellant had filed a refund claim on 11.06.2018 which was though rejected by the original authority but allowed by the Commissioner (Appeals). The interest was claimed under Section 11BB which is reproduced below:- SECTION [11BB. Interest on delayed refunds . - 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, [not below five per cent] and not exceeding thirty per cent per annum as is for the time being fixed [by the Central Government, by Notification in the Offici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of refund. Though there is no ambiguity in Section 11BB, however, the issue has been considered elaborately by the Hon ble supreme Court in the following cases which held as under:- In case of Ranbaxy Laboratories Ltd., Hon ble Supreme Court held as under:- 9 . It is manifest from the afore-extracted provisions that Section 11BB of the Act comes into play only after an order for refund has been made under Section 11B of the Act. Section 11BB of the Act lays down that in case any duty paid is found refundable and if the duty is not refunded within a period of three months from the date of receipt of the application to be submitted under sub-section (1) of Section 11B of the Act, then the applicant shall be paid interest at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r perspective, it is seemly to refer to the provisions dealing with refund and interest. Section 11B deals with claim for refund of duty and interest, if any, paid on such duty. The said provision reads as under :- Section 11B. Claim for refund of duty and interest, if any, paid on such duty - (1) Any person claiming refund of any duty of excise and interest, if any, paid on such duty may make an application for refund of such duty and interest, if any, paid on such duty to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise before the expiry of one year from the relevant date in such form and manner as may be prescribed and the application shall be accompanied by such documentary or other evidence (i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to - (a) rebate of duty of excise on excisable goods exported out of India or on excisable materials used in the manufacture of goods which are exported out of India; (b) unspent advance deposits lying in balance in the applicant s account current maintained with the Commissioner of Central Excise; (c) refund of credit of duty paid on excisable goods used as inputs in accordance with the rules made, or any notification issued, under this Act; (d) the duty of excise and interest, if any, paid on such duty paid by the manufacturer, if he had not passed on the incidence of such duty and interest, if any, paid on such duty to any other perso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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