Delayed refund interest is payable on wrongfully retained tax money, with further interest limited to the filing date.

Interest is payable on a delayed refund where money was collected from the assessee without authority and retained by the Revenue beyond the statutory refund period under section 11BB of the Central Excise Act, 1944. The wrongful withholding of the assessee's money justifies compensation, and the absence of an express provision does not defeat relief. Further interest on unpaid interest may also be claimed, but only up to the date of filing before the Court; no further interest accrues for the period during which delay was attributable to the pendency of the matter before the Court.

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Issues: Entitlement to interest on the delayed refund of the amount collected from the assessee and entitlement to further interest on the unpaid interest amount.

Analysis: The amount had been collected from the assessee without authority and remained with the Revenue for several years before refund. Section 11BB of the Central Excise Act, 1944 mandates interest on delayed refunds after expiry of the statutory period. The principle applied is that wrongful withholding of money by the Revenue requires compensation, and the absence of an express provision does not defeat relief where the assessee's money has been retained without legal justification. At the same time, further interest cannot be claimed for the period during which the matter remained pending before the Court, since the Revenue cannot be penalized for delay not attributable to it.

Conclusion: The assessee is entitled to interest on the delayed refund and to further interest on the unpaid interest amount up to the date of filing before the Court, but not beyond that date.

Ratio Decidendi: Where money is wrongfully retained by the Revenue, interest on delayed refund is payable under the statutory refund provision, and compensation may also extend to unpaid interest, but not for periods attributable to pendency before the Court.

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