Interest on interest for excise refund delays is not payable absent express statutory authority.

Interest on belated payment of interest for a refund is not payable under the Central Excise Act, 1944 because the statute contains no express provision authorising interest on interest. The Tribunal followed the Larger Bench view that Section 11BB cannot be read expansively to create such a liability by interpretation, and distinguished the Supreme Court ruling relied on below as arising under the Income Tax Act rather than indirect tax refund law. On that basis, the claim for interest on delayed payment of interest failed.

---

---

Issues: Whether interest is payable on belated payment of interest on a refund under the Central Excise Act, 1944.

Analysis: The Tribunal held that the claim for interest on delayed payment of interest could not be sustained because the Central Excise Act, 1944 contains no specific provision authorising such a levy. It followed the Larger Bench view that, unlike the Income Tax Act, the excise law does not contain an equivalent statutory scheme permitting interest on interest, and that reading such a liability into Section 11BB would amount to legislation by interpretation. The Tribunal also noted that the Supreme Court decision relied upon by the lower authority arose in the context of the Income Tax Act and was not governing for indirect tax refund claims.

Conclusion: Interest on belated payment of interest is not payable under the Central Excise Act, 1944, and the assessee's claim failed.

---