2015 (1) TMI 1385 - HC - Central Excise

Karnataka HC Reduces Interest Rate on Refunds: 9% to 6% under Section 11BB

The Karnataka HC partially allowed the Revenue's appeal, reducing the interest rate on refunds from 9% to 6% in accordance with a notification under ... Rate of interest on delayed refund - rate of interest u/s 11BB of the CEA 1944 - 6% or 9%? - Held that: - The interest payable in terms of Section 11BB of the Act, which in turn is with reference to the notification referred above. This aspect has not been considered by the learned Single Judge - the rate of interest is to be reduced to 6% from 9% - appeal allowed in part. The Karnataka High Court judgment in 2015 (1) TMI 1385 involved a Revenue appeal challenging the order directing payment of interest at 9% on refunds. The court noted a notification fixing interest at 6% under Section 11BB of the Central Excise Act and reduced the interest rate to 6% from 9%. The appeal was partly allowed, and the interest rate on refunds was adjusted to 6%.