Interest on delayed CENVAT refund follows once refund is sanctioned after the statutory period and delay is established.

Interest is payable on delayed refund of accumulated CENVAT credit once the refund is sanctioned beyond the statutory period. The Bombay HC applied earlier decisions holding that, for exported services, delay in granting a sanctioned refund attracts interest as a matter of law on the delayed amount. The Revenue's objection that the petitioner's computation required separate scrutiny did not defeat the underlying entitlement to interest after sanction of the refund. The writ petition succeeded, and the respondents were directed to release the interest expeditiously.

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Issues: Whether the petitioner was entitled to interest on the delayed refund of accumulated CENVAT credit under the relevant refund provisions.

Analysis: The refund applications were filed in respect of exported services and were ultimately sanctioned after adjudication and delay. The controversy was covered by earlier decisions of the Court holding that where refund is granted beyond the prescribed period, interest becomes payable on the delayed amount. The Revenue's objection that the petitioner's computation required separate scrutiny did not dislodge the legal entitlement to interest once the refund itself stood sanctioned.

Conclusion: The petitioner was held entitled to interest on the delayed refund.

Final Conclusion: The writ petition succeeded and the respondents were directed to release the interest expeditiously.

Ratio Decidendi: Once a refund of accumulated credit is sanctioned after the statutory period, interest follows as a matter of law on the delayed refund amount.

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