Tribunal orders Revenue to pay interest under Section 11BB, citing Exemption Notification interpretation.

The Tribunal allowed the appeal, directing the Revenue to pay interest to the Appellant under Section 11BB within two months. The decision was based on the interpretation of the Exemption Notification, the applicability of Section 11BB, and judicial precedents set by the Hon'ble Gauhati High Court.

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Issues involved:
1. Denial of interest under Section 11BB on a refund sanctioned to the Appellant.
2. Interpretation of Exemption Notification No. 32/99-CE dated 08.07.1999 and its impact on the applicability of Section 11BB.
3. Legal entitlement of the Appellant to interest under Section 11BB in the absence of specific provisions in the Exemption Notification.

Issue 1: Denial of interest under Section 11BB on a refund sanctioned to the Appellant:
The Appellant, a manufacturer of Branded Chewing Tobacco, filed an appeal against the denial of interest under Section 11BB on a refund sanctioned by the Ld. Assistant Commissioner. The Ld. Assistant Commissioner rejected the interest claim on the ground that the Exemption Notification under which the refund was processed did not provide for interest on delayed payment. The Ld. Commissioner (Appeals) upheld this decision, leading to the Appellant's appeal before the Tribunal.

Issue 2: Interpretation of Exemption Notification No. 32/99-CE dated 08.07.1999 and its impact on the applicability of Section 11BB:
The Exemption Notification No. 32/99-CE dated 08.07.1999 granted exemption to certain units from Excise Duty, subject to specific conditions. The Appellant claimed a refund under this Notification, which triggered a dispute regarding the entitlement to interest under Section 11BB. The Appellant argued that the Notification did not restrict the application of Sections and Rules under the Central Excise Law, including Section 11BB. The Ld. Advocate contended that the Notification should not be read independently and that the Appellant was entitled to interest as per Section 11BB.

Issue 3: Legal entitlement of the Appellant to interest under Section 11BB in the absence of specific provisions in the Exemption Notification:
The Appellant relied on the judgment of the Hon'ble Gauhati High Court in a similar case, which held that Section 11B does not exclude the claim of refund under the Exemption Notification. The Tribunal noted that the Exemption Notification did not contain provisions for interest, but the judicial discipline required granting interest under Section 11BB. Citing previous judgments, the Tribunal ruled in favor of the Appellant, allowing interest under Section 11BB to be paid within two months from the date of the order.

In conclusion, the Tribunal allowed the appeal and directed the Revenue to pay interest to the Appellant under Section 11BB within two months. The decision was based on the interpretation of the Exemption Notification, the applicability of Section 11BB, and the judicial precedents set by the Hon'ble Gauhati High Court.

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