Delayed excise refund interest applies when appellate refund orders are treated as Section 11B(2) orders under the statute.

Interest under Section 11BB was payable on a delayed excise refund even though the refund was ordered by the Tribunal and not directly by the Assistant Commissioner under Section 11B(2), because the Explanation treats such appellate refund orders as orders under that sub-section for Section 11BB purposes. As the refund had remained unpaid for more than three months, the statutory condition for interest was satisfied, and the contrary view of the Tribunal was set aside. The assessee was therefore entitled to interest, with the quantum to be determined separately.

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Issues: Whether interest was payable under Section 11BB of the Central Excise Act, 1944 on delayed refund where the refund had been ordered by the Tribunal and not directly by the Assistant Commissioner under Section 11B(2).

Analysis: The explanation to Section 11BB deems an order of refund made by the Commissioner (Appeals), Appellate Tribunal or Court against an order of the Assistant Commissioner under Section 11B(2) to be an order passed under that sub-section for the purposes of Section 11BB. Since the refund had admittedly remained unpaid for more than three months, the statutory condition for payment of interest was satisfied.

Conclusion: Interest under Section 11BB was held payable on the delayed refund, and the contrary view of the Tribunal was set aside.

Final Conclusion: The assessee was held entitled to interest on the refund, and the matter was sent back for determination of the quantum of interest.

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