Statutory interest on delayed excise refund applies once the refund claim remains unpaid beyond the prescribed period.

Statutory interest was payable on a delayed excise refund where the refund claim was not granted within the prescribed three-month period from the date of application. The refund, though ultimately allowed in revision, attracted liability to pay interest under Section 11BB of the Central Excise Act, 1944 for the period of delay. The operative principle is that failure to release the refund within the statutory timeline triggers interest on the refunded amount for the delayed period.

---

---

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

Analysis: The refund was not granted within the prescribed period of three months from the date of the refund claim. The refund ultimately allowed in revision was therefore treated as carrying liability to pay statutory interest for the period of delay.

Conclusion: Interest under Section 11BB of the Central Excise Act, 1944 was held payable on the refunded amount for the period of delay, in favour of the petitioner.

---