Delayed refund interest under Section 11BB kept open as Revenue ordered to pay refund amount within three months

Delayed refund interest under Section 11BB of the Central Excise Act was addressed in light of a binding Division Bench precedent, with counsel for the Revenue accepting that the issue was covered by that authority. The writ appeal was therefore dismissed as withdrawn, and the Revenue was directed to pay the amount ordered by the Single Judge within three months. The Court did not finally decide the independent applicability of Section 11BB on merits; instead, the question of interest on the delayed refund was left open and made subject to the outcome of a pending Special Leave Petition before the Supreme Court.

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Outcome: The writ appeal was dismissed as withdrawn, and the direction for payment of the refund amount was left to operate, with the interest component made subject to the outcome of the pending special leave petition.

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