I HIGH COURT
14. Blackberry India Pvt Ltd vs. Asstt. Central Excise & CGST
2023-TIOL-967-HC-DEL-ST
Date of order: 3rd August, 2023
The relevant date for interest payment under section 11BB of Central Excise Act is three months after the submissions of claim of refund and not the date of letter requesting for refund.
FACTSPetitioner challenged the order to the extent it was denied interest under section 11BB of CE Act read with section 83 of Finance Act, 1994 on the amount of refund sanctioned. Adjudicating authority contended that the refund was sanctioned within a period of three months as they considered the dates of applications for refund as 7th February, 2023 instead of the date on which the applications were first made.
HELDFollowing a settled issue by Supreme Court in the case of Ranbaxy Laboratories Ltd. 2011-TIOL-105-SC-CX, adjudicating authority proceeded on the basis that interest under section 11BB of the Excise Act would be payable after expiry of three months from the date of application of refund. However, while considering the date of applications, he erred in holding the date of the letter as the date of application for refund whereas petitioner had filed its applications in March 2013, March 2014 and June 2014 respectively. Hence interest is required to be calculated from the expiry of these relevant dates. Thus, allowing the petition, the High Court directed the adjudicating a
