interest on delayed refund

[Arun Aggarwal]

Sir,

I have been allowed refund by the supreme court of central excise, even after that the dept didnt refunded the money , I am going for the contempt in the supreme court , I want to know that what rate of interest I should receive on the delayed refund? refund application was filed in 2008 and was decided by the supreme court in 2016.

thanks

Arun Aggarwal

[Amit Agrawal]

You should seek penal interest (say @ 12% p.a.) in given scenario, along-with costs.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Amit Agrawal]

Besides above, please also note the followings:

A. Section 11BB of the Central Excise Act, 1944.

B. Circular No.670/61/2002-CX, dated 1-10-2002

C. Ranbaxy Laboratories Limited Vs. Union of India, 2011 (10) TMI 16 - SUPREME COURT

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[KASTURI SETHI]

As per Section 11 BB of Central Excise Act, rate of interest ranges between 5% to 30% (to be fixed by Govt. by way of notification). Govt. fixed interest rate for delayed refund @ 6% vide Notification No.67/2003-CE-NT dated 12.9.2003.

Interest is to be paid by the department from the date of expiry of 60 days from the date of receipt of refund claim and NOT from the date of order of the Court-------Allahabad High Court in the case of Alok Traders reported as 2022 (5) TMI 347 - ALLAHABAD HIGH COURT

[Arun Aggarwal]

Thanks

Mr Kasturi Sethi and Amit Agarwal ji

[Amit Agrawal]

You are welcome, Shri Arun Ji!

AI Summary

Interest on delayed refunds: rate set by statute and interest runs from expiry of prescribed period, not court order. Section 11BB authorises a government-prescribed interest rate on delayed central excise refunds; the rate has been fixed by notification. Interest is payable from the expiry of the prescribed period after receipt of the refund claim (not from the date of a court order). Parties may also seek penal interest and costs in proceedings, but statutory interest and its commencement are governed by the Act, notification and relevant judicial interpretation.