Tribunal Grants Interest on Delayed Refund Claims Under Section 11BB, Sets Aside Denial Orders

The Tribunal held that it had jurisdiction to decide on interest claims related to rebate, despite the jurisdiction being ousted for appeals on rebate of duty of excise. All 18 appeals, involving individual amounts less than Rs.50,000, were admitted for hearing due to the recurring nature of the issue. The Tribunal ruled in favor of the appellants, granting interest under Section 11BB for delayed refund claims, emphasizing the unconditional nature of interest under Section 11BB regardless of past legal proceedings. The impugned orders denying interest were set aside, providing consequential relief to the appellants.

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Issues:
1. Jurisdiction of the Tribunal to decide on interest claims related to rebate.
2. Entertaining appeals involving individual amounts less than Rs.50,000.
3. Granting interest under Section 11BB for delayed refund claims.

Analysis:
1. The primary issue before the Tribunal was the jurisdiction to decide on interest claims related to rebate. The appellant argued that the Tribunal has jurisdiction as the rebate claims had been settled, and they were seeking interest under Section 11BB for delayed refund sanction. The Tribunal found that while the Tribunal's jurisdiction is ousted for appeals on rebate of duty of excise, there is no specific bar for interest on rebate claims treated as refund claims under Section 11B. Thus, the preliminary objection raised by the respondent was overruled.

2. The second objection raised was regarding the individual amounts in each of the 18 appeals being less than Rs.50,000. The Tribunal has the discretion not to entertain appeals below this threshold. However, considering the recurring nature of the issue and the different periods involved in these appeals, all 18 appeals were admitted for hearing.

3. The main contention revolved around granting interest under Section 11BB for delayed payment of refund claims. The appellants claimed interest due to delays beyond the 3-month period from the date of filing the claims. The department denied interest citing previous court decisions and lack of specific orders from higher courts. The Tribunal, after considering legal provisions and relevant court decisions, ruled in favor of the appellants. It emphasized that Section 11BB allows interest for delays beyond the specified period, irrespective of the reasons for the delay. The Tribunal also highlighted a Supreme Court ruling emphasizing the unconditional nature of interest under Section 11BB, regardless of past legal proceedings. Consequently, the impugned orders denying interest were set aside, and all 18 appeals were allowed with consequential relief to the appellants.

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