Interest on refund under Section 11BB does not extend to interest on interest once refund and delayed interest are sanctioned.

Interest on delayed refund under Section 11BB of the Central Excise Act, 1944 is confined to the refund amount not paid within three months from the refund application. Where the duty refund was already sanctioned within the statutory period and interest on the delayed refund amount had also been granted, there was no further statutory basis for claiming interest on that interest. The cited precedent was treated as an exceptional relief tied to delay in the original refund itself and did not create a general right to compound or "interest on interest" relief. The additional claim was therefore not maintainable and was rejected.

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Issues: Whether interest is payable on the interest already sanctioned for delayed refund under Section 11BB of the Central Excise Act, 1944.

Analysis: The refund of duty had already been sanctioned within the statutory period and interest had also been granted on the delayed refund amount. The further claim was for interest on that interest amount. Section 11BB contemplates interest only on the amount of refund not paid within three months from the date of the refund application. The exceptional relief recognised in the cited precedent was linked to delay in the original refund itself and did not create a general statutory entitlement to interest on interest where the principal refund and the consequential interest had already been sanctioned.

Conclusion: The claim for interest on interest was not maintainable under Section 11BB and was rightly rejected.

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