Waiver of statutory interest on delayed refund can be valid where the claimant expressly and consciously relinquishes the right.

Interest on delayed refund under Section 11BB applies to refunds arising from pre-deposits made under Section 35F, but the statutory entitlement can be waived by a conscious and intentional relinquishment of the right. A written communication stating that no interest would be claimed for delay in settling the refund claims was treated as clear evidence of waiver, especially where it was not repudiated. On those facts, the denial of interest was upheld because the assessee had expressly abandoned the claim.

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Issues: Whether the assessee was entitled to interest on delayed refund of duty and pre-deposit under Section 11BB, and whether that entitlement had been waived.

Analysis: Interest under Section 11BB applies to delayed refunds, including refunds arising from pre-deposits made under Section 35F. However, a statutory right to interest may be waived if the claimant intentionally abandons it with knowledge of the right. The assessee had addressed a letter to the department expressly stating that no interest would be claimed for delay in settlement of the refund claims. That communication showed conscious and intentional relinquishment of the right, and it was not repudiated. On those facts, the denial of interest could not be disturbed.

Conclusion: The assessee was not entitled to interest, as the right to claim it had been waived.

Ratio Decidendi: A statutory right to interest on refund, though available under Section 11BB, can be validly waived by an express and conscious relinquishment evidenced by the claimant's conduct or written communication.

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