TMI Blog2023 (12) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... the application to be submitted under sub-section (1) of Section 11-B of the Act, then the applicant shall be paid interest at such rate, as may be fixed by the Central Government, on expiry of a period of three months from the date of receipt of the application. It is clear from the extract that the submission of the learned counsel for the respondent on the basis of the Explanation to Section 11BB of the Act to suggest that in view of the deeming contained therein, the interest payable on delayed refund under Section 11BB of the Act would accrue only in the event of delay in making the refund beyond 3 months from the date of the order of the adjudicating authority / appellate authority / Court was rejected by the Hon'ble Supreme Court. The above judgment of the Hon ble Supreme Court in the case of Ranbaxy has been subsequently followed in the case of Manisha Pharmo Plast Private Ltd., v. Union of India [ 2020 (11) TMI 726 - SUPREME COURT] . Following the above judgments of the Hon ble Supreme Court, this Court has no hesitation to hold that interest on refund in terms of Section 11 BB of the Act would accrue in the event of delay in grant of refund beyond 3 mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terating the view that the process carried out by the petitioner did not constitute manufacture and thus not entitled to CENVAT Credit. iv. Whileso, the Principal Commissioner of Central Excise, Chennai I passed an order in Original No.52/2017 dated 11.05.2017 holding that the process carried out by the petitioner amounted to manufacture in terms of Section 2(f) of the Act. v. A writ petition was filed challenging the order in Appeal No.314/2017 dated 31.10.2017 on the premise that though the same was passed subsequent to the Order in Original No.52/2017 dated 11.05.2017 wherein it was found that the activity carried out by the petitioner amounted to manufacture the same was not taken into account. This Court was pleased to set aside the order in Appeal No. 314/2017 in W.P.No.2139/2018 directing the Commissioner Appeals II to hear the appeal afresh and to pass orders adverting to the order in Original No.52/2017 dated 11.05.2017 and also the acceptance of the said order by the Committee of Chief Commissioners. vi. After analyzing the entire facts, the Commissioner Appeals vide order dated 27.08.2019 in Appeal No.221/2019 remitted the matter back to the Adjudicating Authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Court in the case of Ranbaxy Laboratories reported in 2011 (273) ELT 3 (SC) and also the direction of this Court in W.P.No.9348 of 2020 wherein it has been held that the judgment of the Hon'ble Supreme Court in Ranbaxy would apply on all fours to the case of the petitioner. 4. To the contrary, the learned counsel for the respondent would place reliance on the counter and submitted by placing emphasis on the Explanation to Section 11BB of the Act that in view of the deeming contained therein, the interest payable on delayed refund under Section 11BB of the Act would accrue only in the event of delay in making the refund beyond 3 months from the date of the order of the adjudicating authority / appellate authority / Court. 5. Heard both sides. Perused the materials on record. 6. This Court finds that the present issue viz., whether the liability of the Revenue to pay interest under Section 11BB of the Act would accrue/commence from the date of expiry of 3 months from the date of application for refund (or) on the expiry of 3 months from the date of the order of the adjudicating authority/ Court stands resolved by the judgment of the Hon'ble Supreme Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fund sanctioned beyond a period of 3 months from the date of application. The relevant portion is extracted hereunder: 15. At this juncture, it would be apposite to extract a Circular dated 1- 10-2002, issued by the Central Board of Excise and Customs, New Delhi, wherein referring to its earlier Circular dated 2-6-1998, whereby a direction was issued to fix responsibility for not disposing of the refund/rebate claims within three months from the date of receipt of application, the Board has reiterated its earlier stand on the applicability of Section 11-BB of the Act. Significantly, the Board has stressed that the provisions of Section 11-BB of the Act are attracted automatically for any refund sanctioned beyond a period of three months. The circular reads thus: Circular No. 670/61/2002-CX, dated 1-10-2002 F. No. 268/51/2002-CX.8 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject.: Non-payment of interest in refund/rebate cases which are sanctioned beyond three months of filing Regarding I am directed to invite your attention to provisions of Section 11-BB of the Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. 17. We, thus find substance in the contention of the learned counsel for the assessee that in fact the issue stands concluded by the decision of this Court in U.P. Twiga Fiber Glass Ltd. [(2009) 243 ELT A-27 (SC)] In the said case, while dismissing the special leave petition filed by the Revenue and putting its seal of approval on the decision of the Allahabad High Court, this Court had observed as under: (ELT p. A-27) Heard both the parties. In our view the law laid down by the Rajasthan High Court succinctly in J.K. Cement Works v. CCE Customs [(2004) 170 ELT 4 (Raj)] vide para 33: (ELT p. 11) 33. A close reading of Section 11-BB, which now governs the question relating to payment of interest on belated payment of interest, makes it clear that relevant date for the purpose of determining the liability to pay interest is not the determination under sub-section (2) of Section 11-B to refund the amount to the applicant and not to be transferred to the Consumer Welfare Fund but the relevant date is to be determined with reference to date of application laying claim to refund. The non-payment of refund to the applicant claimant within three months fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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