Interest on security release under Central Excise law was denied because the claim was not a refund under the statute.

Interest under Section 11BB of the Central Excise Act, 1944 was not attracted because the dispute concerned only the release and encashment of National Savings Certificates furnished as security for a licence and bond, not a refund of excise duty. As the claim did not fall within the scope of Section 11B, the demand for interest was not maintainable.

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Issues: Whether interest under Section 11BB of the Central Excise Act, 1944 was payable on release of National Savings Certificates furnished as security, and whether such release could be treated as a refund claim under Section 11B of the Central Excise Act, 1944.

Analysis: The dispute concerned only the encashment and release of National Savings Certificates furnished as security for the licence and bond, and not a refund of excise duty. Since the claim did not fall within the scope of Section 11B of the Central Excise Act, 1944, the provision for grant of interest under Section 11BB of the Central Excise Act, 1944 was held not to be attracted.

Conclusion: The claim for interest was not maintainable and the appeal failed.

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