TaxTMI 
TaxTMI 
2017 (6) TMI 105
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....e months of the date of filing the refund claims. It is fact on record that the appellants have given undertaking before the adjudicating authority that they will not claim any interest on the refund. The adjudicating authority although sanctioned refund claims but not given any interest for delayed refund. The appellant filed appeals before the Ld. Commissioner (A) against order of non payment of interest on delayed refund. The ld. Commissioner (A) dismissed the appeals filed by the appellant on the ground that as the appellant has not filed any application for claim of interest, therefore, there appeals are pre-mature. Aggrieved from the said orders, the appellant is before me. 3. The Ld. Consultant for the appellant submits that there i....
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....s been observed as under: "9. Section 11BB of the Act reads as follows : Interest on delay refunds. - If any duty ordered to be refunded under sub-section (2) of Section 11B to any applicant is not refunded within three months from the date of receipt of application under sub-section (1) of that section, there shall be paid to that application interest at such rate, (not below five per cent.) and not exceeding thirty per cent. per annum as is for the time being fixed (by the Central Government, by Notification in the Official Gazette), on such duty from the date immediately after the expiry of three months from the date of receipt of such application till the date of refund of such duty : Provided that where any duty ordered to be ref....
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....erest cannot be denied. 11. Circular No. 670/61/2002-CX, dated 1-10-2002 reads as follows : 2. In this connection, Board would like to stress that the provisions of Section 11BB of Central Excise Act, 1944 are attracted automatically for any refund sanctioned beyond a period of three months. The jurisdictional Central Excise Officers are not required to wait for instructions from any superior officers or to look for instructions in the orders of higher appellate authority for grant of interest. Simultaneously, Board would like to draw attention to Circular No. 398/31/98-CX, dated 2-6-1998 [1998 (100) E.L.T. T16] wherein Board has directed that responsibility should be fixed for not disposing of the refund/rebate claims within three mont....
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....on has nothing to do with the postponement of the date from which interest becomes payable under Section 11BB of the Act. Manifestly, interest under Section 11BB of the Act becomes payable, if on an expiry of a period of three months from the date of receipt of the application for refund, the amount claimed is still not refunded. Thus, the only interpretation of Section 11BB that can be arrived at is that interest under the said section becomes payable on the expiry of a period of three months from the date of receipt of the application under sub-section (1) of Section 11B of the Act and that the said Explanation does not have any bearing or connection with the date from which interest under Section 11BB of the Act becomes payable. 13. In....