2015 (10) TMI 1364

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....cise Act. In other words the question is whether the liability of the Revenue to pay interest under Section 11BB of the Act commences from the date of expiry of 3 months from the date of receipt of application for refund or on the expiry of the said period from the date on which the order of refund is made. As per the learned A.R. interest have already been allowed to the respondent-assessee from the date of the enactment of Section 11BB. Thus the question is whether the respondent-assessee under the facts and circumstances is entitled to interest from the date of enactment of Section 11BB as already allowed or whether the respondent-assessee is entitled to interest from the expiry of 3 months from the date of its application and/or order o....

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....terest on the amount is liable to be paid on expiry of period of three months from the date of receipt of the application.The Explanation appearing below section 11BB of the Act shows that it introduces deeming fiction that where the order for refund of duty paid is made not by the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise but is made by the Commissioner (Appeals), Appellate Tribunal or by the Court, then for the purpose of this section the order made by the Commissioner (Appeals), Appellate Tribunal or by the Court shall be deemed to be an order made under sub-section (2) of Section 11B of the Act. Thus, the purpose of introducing explanation was to introduce deeming fiction that for the purpose of s....

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....is disposed of." 4.2 The respondent also draws my attention that similar issue have also been considered by the Hon'ble Supreme Court in the case of Ranbaxy Laboratories Limited vs. Union of India 2011 (273) ELT 3 (S.C.) wherein the question before the Hon'ble High Court was same as in this appeal and the Hon'ble Apex Court after taking notice of the provisions of Section 11B and 11BB of the Act have held that it is manifest from the provisions of Section 11BB of the Act which come into play only after the order for refund has been made under Section 11B of the Act. 11BB of the Act lays down that in case any duty paid is found refundable and the duty is not refunded within a period of 3 months from the date of receipt of appl....