TMI Blog2024 (3) TMI 593X X X X Extracts X X X X X X X X Extracts X X X X ..... m within two days with the receipt of the application. Thus, it becomes important, the department to indicate that it actually gave a deficiency memo within two days of the receipt of the refund application filed with the department or to pay interest as per provisions of Section 11B. The matter is therefore remanded to the Commissioner (Appeals) to consider the same in view of cited decision as well as to consider the fact as asserted that no deficiency memo within the stipulated period of two days was given to the party. Appeal is allowed by way of remand. - HON'BLE MEMBER ( JUDICIAL ) , MR. SOMESH ARORA Shri. Deepak Ramchandani, Authorized Representative for the Appellant Shri. Anand Kumar , Superintendent ( AR ) for the Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on 2023 (4) CENTAX 405 (Cal.) in the matter of V.R. OVERSEAS PVT. LTD VS. COMMISSIONER OF CUSTOMS (PORT) in which it was held that in the case of interest for delay in refund, party is entitled to interest only from the date when all shortcomings pointed by the department are resolved and payment for refund has been delayed beyond statutory period. It was his contention that the working of three months period and interest thereof will depend upon when the party makes up for the deficiency pointed out by the department. 4. I have considered the rival submissions. I find that in the decision of UNION OF INDIA ORS. Vs. HAMDARD (WAQF) LABORATORIES (cited supra) relying upon the board circular decided the matter as follows:- 17. The seminal is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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. 13. Manifestly, interest under Section 11BB of the Act becomes payable, if on an expiry of a period of three months from the date of receipt of the application for refund, the amount claimed is still not refunded. Thus, the only interpretation of Section 11BB that can be arrived at is that interest under the said Section bec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der 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. 19 .. 20 ... 21. As far the said principles are concerned, they are binding on us. But the facts in the case at hand are quite different. It is not a case where the assessee is claiming automatic refund. It is a case that pertains to grant of interest where the refund has been granted. The grievance pertains to delineation by the competent authority in a procrastinated manner. In our considered opinion, the principle laid down in Ranbaxy Laboratories Limited (supra) would apply on all fours to the case at hand. It is obligatory on the part of the Revenue to intimate the assessee to remove the deficiencies in the application ..... X X X X Extracts X X X X X X X X Extracts X X X X
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