AI Drafter 
TaxTMI 
TaxTMI 
2016 (8) TMI 124
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....before the writ Court was the entitlement of the writ petitioner to interest under Section 11BB of the Central Excise Act, 1944 on the delayed excise duty refund by the department to the writ petitioner. 4. Writ petitioner (petitioner, hereinafter) is a company incorporated under the Companies Act, 1956, owning amongst others the Chabua Tea Estate in the district of Dibrugarh, Assam. Petitioner is engaged in the business of cultivation and manufacture of tea and tea waste, which are exigible to excise duty under Chapter 9 of the Schedule to the Central Excise Tariff Act, 1985, having central excise registration number. 5. The Central Government formulated new industrial policy in the year 1997 giving various incentives to stimulate in....
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....out of the claimed amount of Rs. 1,10,61,418.00. It was stated that the refund claim for the months of August, 1999, September, 1999, May, 2000, September, 2000, November, 2001 and December, 2001 involved amounts of over Rs. 5 lakhs, which required audit clearance. Thus, an amount of Rs. 33,09,009.00 (Rs. 1,10,61,418.00 - Rs. 77,52,409.00) was kept pending. 9. The sanctioned amount of Rs. 77,52,409.00 was refunded to the petitioner. 10. Commissioner of Central Excise, Dibrugarh preferred appeal against the aforesaid order dated 05-08-2005. The appellate authority i.e. Commissioner (Appeals), by order dated 31-01-2006 rejected the appeal and upheld the order dated 05-08-2005. 11. Revenue thereafter preferred second appeal before the....
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....urers but was designed to give effect to exemption. Consequently, it was contended that provision of Section 11B of the Central Excise Act, 1944 would not be applicable in such cases. 15. After due consideration, the writ Court upheld the contention of the writ petitioner and allowed the writ petition vide the judgment and order dated 08-11-2012. It was held that language of Section 11B is very clear and unambiguous. The Section does not distinguish or differentiate between any kind of excise duty refund, whether duty paid in excess or duty paid which are exempted. Relevant portion of the judgment and order dated 08-11-2012 reads as under :- "25. Before we proceed further, relevant portion of the notification dated 08-07-1999 may be l....
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..... Section 11B of the Central Excise Act, 1944 deals with claim for refund of duty. It provides that any person claiming refund of any duty of excise may make an application with relevant documents and evidence for refund of such duty to the Assistant Commissioner of Central Excise before the expiry of six months from the relevant date. Under sub-section (2) of section 11B, if on receipt of any such application, the Assistant Commissioner is satisfied that the whole or any part of the duty of excise paid by the applicant is refundable, he may make an order accordingly. 28. Under section 11BB of the Central Excise Act, 1944, if any duty ordered to be refunded under sub-section (2) of section 11B to any applicant is not refunded within thre....
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.... the aforesaid two provisions, referred to a circular dated 01-10-2002 issued by the Central Board of Excise and Customs, New Delhi wherein and whereby the Board stressed that the provisions of section 11BB of the Central Excise Act, 1944 are attracted automatically for any refund (emphasis ours) sanctioned beyond a period of three months. Hon'ble Supreme Court has held that liability of the Revenue to pay interest under section 11BB commences from the date of expiry of three months from the date of receipt of application for refund under section 11B(1) and not on the expiry of the said period from the date on which the order of refund is made. 31. We also find that a Single Bench of this Court in (2004) 171 ELT 458 (Hindustan....