Liability of interest payament on wrong appropriation

[Guest]

while sanctioning the rebate claims the Asst. Commissioner has exercised section 11 of CE ACT 1944. At that time one of our confirmed demand is pending before Commissioner (Appeals). But subsequently it was allowed by Commissioner in our favour. It means that the appropriation has done by the Asst. Commissioner is decided as not sustainable. Immediately we submitted the Commissioner (Appeals) order to the AC to sanction our refund along with interest under section 11BB delay of refunds along with interest. To the best of my knowledge and basing on Honourable Supreme court judgment ' Renbaxy India Ltd., we are eligible for interest after completion of 3 months from the date of our refund claim lodged in ACES. Please comment

AI Summary

Interest on delayed refunds where wrongful appropriation later set aside; interest accrues after statutory period under section 11BB. A taxpayer seeks sanction of a refund and interest after the Assistant Commissioner wrongfully appropriated a confirmed demand against a rebate claim later allowed by the Commissioner (Appeals). The core question is entitlement to interest under section 11BB for delay in refunds once the appeals order setting aside the appropriation is produced, and whether interest accrues after the statutory period following lodgement of the refund claim in ACES.