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 Rate for Delayed Central Excise Refunds Clarified: 6% Annually, Starting 60 Days Post-Claim Receipt, Per Section 11BB. A user inquired about the interest rate applicable on a delayed refund approved by the Supreme Court concerning a Central Excise matter. The refund application was filed in 2008 and decided in 2016. A respondent suggested seeking penal interest at 12% per annum and referenced Section 11BB of the Central Excise Act and relevant case law. Another respondent clarified that the interest rate for delayed refunds is 6% as per a government notification, starting 60 days after the refund claim is received, not from the court's order date. The user acknowledged the responses.