2018 (2) TMI 620

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....ent was claimed by the appellant on the transaction value of the goods under Section 4 of Central Excise Act, 1944. The assessment was directed to be on provisional basis. When the assessment was finalized on 17.12.1998 and as a consequence of said finalization of assessment excess duty of Rs. 49,17,209/- became refundable to the appellant. Accordingly, necessary refund application was filed on 18.01.1999. The refund application was rejected on the ground of unjust enrichment and litigationcontinued at various forums till it was finally settled in their favour by the Hon'ble Gujarat High Court vide order dated 24.03.2011. Thereafter, they approached the department to refund the said amount along with interest under Section 11BB of CEA, 1944....

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....axy Laboratories Ltd.'s case (supra). It is not in dispute that consequent to the finalization of provisional assessment, the appellant had filed the refund claim of the excess duty of Rs. 49,17,209/- paid during the period of provisional assessment. Initially, the refund claim was rejected on the ground of unjust enrichment and on a protracted litigation it was decided in their favour finally by the Hon'ble High Court on 24.03.2011. Consequently, the refund was sanctioned to the appellant on 20.09.2012. The appellant had claimed interest from 18.04.1999 i.e. three months after filing the refund claim till the payment of the refund amount to them i.e. 20.09.2012. The Hon'ble Supreme Court in Ranbaxy Laboratories Ltd.'s case observed as foll....

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....ed 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........................................................................... ................................................................................................................................................................................. .........................................................................................................................................................