2019 (2) TMI 499

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....-heading 8547 of Customs Tariff Act, 1975, whereas Revenue classified the product under Chapter sub-heading 3926 of Customs Tariff Act, 1975. Differential duty was paid under protest and subsequently refund was claimed on 6.7.1989. The appellant succeeded on the issue of classification before the Hon'ble Bombay High Court. Thereafter, they have filed a reminder letter dated 6.4.1994 with the Department for refund of excess duty recovered. The said refund claim was rejected by the Revenue as barred by limitation. The matter reached before the Tribunal and the Tribunal by its order dated 09.01.2001 remanded the matter to the Commissioner (Appeals) for de novo consideration. The learned Commissioner (Appeals) thereafter decided the issue i....

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....mendment to Section 27A of the Customs Act, 1962. 4. The learned AR for the Revenue reiterates the findings of the learned Commissioner (Appeals). 5. We have carefully considered the submissions made by both sides. Section 11BB of Central Excise Act, 1944, has been inserted in the year 1995, which reads as under: - "11BB. Interest on delayed 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 applicant 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,....

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....rs clearly state that the relevant date in this regard is the expiry of three months from the date of receipt of the application under Section 11B(1) of the Act. 13. We, thus find substance in the contention of learned counsel for the assessee that in fact the issue stands concluded by the decision of this Court in U.P. Twiga Fiber Glass Ltd. (supra). In the said case, while dismissing the special leave petition filed by the revenue and putting its seal of approval on the decision of the Allahabad High Court, this Court had observed as under :- "Heard both the parties. In our view the law laid down by the Rajasthan High Court succinctly in the case of J.K. Cement Works v. Assistant Commissioner of Central Excise & Customs reported in 2....

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....ted that application by the assessee requesting for refund, was filed before the Assistant Commissioner on 12th January 2004, the Court directed payment of Statutory interest under the said Section from 12th April 2004 i.e. after the expiry of a period of three months from the date of receipt of the application. Thus, the said decision is of no avail to the revenue. 15. In view of the above analysis, our answer to the question formulated in para (1) supra is that the liability of the revenue to pay interest under Section 11BB of the Act commences from the date of expiry of three months from the date of receipt of application for refund under Section 11B(1) of the Act and not on the expiry of the said period from the date on which order of ....