Statutory interest on delayed refund applies once refund is paid after the prescribed period, subject to verification of quantum.

Statutory interest was payable on a delayed excise refund where the refund had already been sanctioned and paid after the prescribed period. The Court applied Section 11BB of the Central Excise Act, 1944, read with Section 83 of the Finance Act, 1994, and held that delay beyond the statutory timeline triggered the right to interest. The respondent was left only to verify the quantum claimed and compute the interest in accordance with law.

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Issues: Whether the petitioner was entitled to interest on delayed refund under Section 11BB of the Central Excise Act, 1944, read with Section 83 of the Finance Act, 1994.

Analysis: The refund had already been sanctioned and paid, and the record showed delay in making the refund beyond the prescribed period. On that basis, the petitioner became entitled to statutory interest for the delayed period. The only further exercise left to the respondent was verification of the quantum of interest claimed and calculation in accordance with law.

Conclusion: The petitioner was held entitled to interest on the delayed refund, subject to due verification of the amount payable.

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