Delayed duty refund attracts statutory interest under Section 11BB; silence in the refund order does not defeat the assessee's claim.

Interest was payable on delayed refund of duty under Section 11BB of the Central Excise Act, 1944 because the provision grants compensatory interest where refund is not released within the prescribed time. The Explanation deems an appellate or court refund order to be an order under Section 11B(2), so the assessee's entitlement to interest did not depend on a separate request before the Tribunal. The Court held that silence in the refund order did not defeat the statutory right to interest, and distinguished refund of pre-deposit cases because this dispute concerned refund of duty. The claim was accepted in favour of the assessee.

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Issues: Whether interest was payable on the delayed refund of duty under Section 11BB of the Central Excise Act, 1944, and from what date such interest was to run.

Analysis: The refund claim, initially rejected by the departmental authorities, was ultimately allowed by the Tribunal, but the refund amount was paid later without interest. Section 11BB provides compensatory interest where refund is delayed, and its Explanation deems an order of refund made by the appellate authority or court to be an order under Section 11B(2) for the purpose of interest. On that footing, the assessee's right to interest did not depend on a separate prayer before the Tribunal. The delay in refund could not be treated as irrelevant merely because the Tribunal's order was silent on interest. The Court also distinguished the case concerning refund of pre-deposit and held that the present matter involved refund of duty, to which Section 11BB squarely applied.

Conclusion: Interest was payable to the assessee under Section 11BB on the delayed refund of duty, and the claim was accepted in favour of the assessee.

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