Tribunal grants interest on delayed refunds, citing Section 11BB of CEA, 1944.

The Tribunal ruled in favor of the Appellant, allowing interest under Section 11BB of CEA, 1944 on delayed refunds. The decision was based on the Supreme Court's interpretation that interest becomes payable if the claimed amount is not refunded within three months from the application date. The Tribunal set aside the previous order and granted the Appeal with consequential relief in accordance with the law.

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Issues:
- Entitlement to interest under Section 11BB of CEA, 1944 on delayed refund.

The judgment addresses the issue of allowing interest under Section 11BB of CEA, 1944 on delayed refunds. The Appellant filed refund claims in 1998 and 1999, seeking refunds of duty paid under protest. Show cause notices were issued proposing rejection of the claims on various grounds. The matter went through multiple stages of adjudication and appeals. The Tribunal previously decided in favor of the Appellant, leading to a refund claim being sanctioned by the Deputy Commissioner. However, the claim for interest was not considered. The Appellant contended that they were entitled to interest three months after the expiry of the refund claims, citing a Supreme Court judgment in the case of Ranbaxy Laboratories Ltd. The Tribunal analyzed the provisions of Section 11BB and the Supreme Court's interpretation, emphasizing that interest becomes payable if the claimed amount is not refunded within three months from the application date. The judgment highlighted a Circular emphasizing the automatic applicability of interest provisions for refunds sanctioned beyond three months. The Tribunal, following the Supreme Court's precedent, ruled in favor of the Appellant, setting aside the impugned order and allowing the Appeal with consequential relief as per law.

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