Delayed refund interest under Central Excise law is payable after appellate refund orders, with remand limited to quantification.

Interest under Section 11BB of the Central Excise Act was treated as payable on a delayed refund where the refund followed an appellate order, because the explanation deems such appellate or court-ordered refund to be an order under Section 11B(2) for interest purposes. The objection that no independent refund order had been passed by the Assistant Commissioner was rejected as inconsistent with that explanation. Since the refund was admittedly due and was paid after more than three months, the statutory conditions for interest were satisfied. The matter was remanded only for quantification of the interest payable.

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Issues: Whether interest under Section 11BB of the Central Excise Act, 1944 was payable on a delayed refund when the refund ultimately followed an appellate order, and whether the matter required remand only for quantification of interest.

Analysis: The explanation to Section 11BB deems an order of refund passed by the Commissioner (Appeals), the Appellate Tribunal or a Court, against an order under Section 11B(2), to be an order passed under Section 11B(2) for the purposes of interest. Since the refund was admittedly due and was paid after more than three months, the statutory conditions for interest were satisfied. The objection that no independent order had been made by the Assistant Commissioner under Section 11B(2) was rejected as being inconsistent with the explanation.

Conclusion: Interest on the delayed refund was held payable, and the matter was remanded to the Tribunal only to determine the quantum of interest.

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