AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (10) TMI 1046
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....y of 3 months from the date of communication of the order of the Appellate authority / Court. 2. Brief Facts: 2.1. The petitioner is engaged in the manufacture of Poly-Isobutylene. Petroleum gas is the feed stock for such manufacture. Petroleum gas was supplied by Madras Refineries Ltd., presently Chennai Metro Corporation Ltd. The supplies were effected through dedicated pipelines. The petroleum gas which was supplied was normally not consumed / used entirely in the manufacturing process. In other words, the supplies were normally in excess of the quantity of petroleum gas required for the manufacturing process. The excess or the unused feed stock was returned to the supplier viz., MRL. The Government vide notification No.159 / 89 - CE d....
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.... of Rs. 66,68,656/-. 2.3. Against the above background the question that arises for consideration is whether the interest would start accruing 3 months from the date of application of refund i.e., 16.11.1994 until the refund was paid on 20.02.2020 in terms of Section 11BB of the Act (or) from the date of the order of this Court in C.M.A.No.4057 of 2005 dated 18.06.2019. The revenue rejected the claim for interest by placing reliance on Section 35 F and 35 FF of the Act while submitting that interest would commence only after 3 months from the final adjudication i.e., by the High Court vide order in C.M.A.No.4057 of 2005 dated 18.06.2019. 3. The learned counsel for the petitioner would submit that the impugned order of assessment denying t....
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....piry of 3 months from the date of receipt of application for refund (or) on the expiry of 3 months from the date of the order to the adjudicating authority/ Court stands resolved by the judgment of the Supreme Court Ranbaxy Laboratories Ltd., v. Union of India, reported in 2011 (273) ELT 3 wherein after finding that the appellant's claim for rebate of duty was rejected by the Assistant Commissioner and was subsequently allowed in appeal which was affirmed in further appeal before the Joint Secretary, Government of India it was held as under: Ranbaxy Laboratories Ltd. v. Union of India, (2011) 10 SCC 292 : 2011 SCC OnLine SC 1420 at page 296 12. It is manifest from the aforeextracted provisions that Section 11-BB of the Act comes into pl....
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....e refund beyond 3 months from the date of the order of the adjudicating authority / appellate authority / Court was rejected by the Hon'ble Supreme Court. The Hon'ble Supreme Court thereafter proceeded to place reliance on the circular dated 02.06.1998 wherein it has been clarified that the provisions of Section 11BB of the Act would stand attracted automatically for any refund sanctioned beyond a period of 3 months from the date of application. The relevant portion is extracted hereunder: "15. At this juncture, it would be apposite to extract a Circular dated 1- 10-2002, issued by the Central Board of Excise and Customs, New Delhi, wherein referring to its earlier Circular dated 2-6-1998, whereby a direction was issued to fix respons....
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....quential refund, the jurisdictional Central Excise Officers had taken the view that since the Tribunal had in its order not directed for payment of interest, no interest needs to be paid. 2. In this connection, the Board would like to stress that the provisions of Section 11-BB of the 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 the higher appellate authority for grant of interest. Simultaneously, the Board would like to draw attention to Circular No. 398/31/98-CX, dated 2-6-1998 [(1998) 100 ELT T-16] wherein the Boa....
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....oms [(2004) 170 ELT 4 (Raj)] vide para 33: (ELT p. 11) '33. A close reading of Section 11-BB, which now governs the question relating to payment of interest on belated payment of interest, makes it clear that relevant date for the purpose of determining the liability to pay interest is not the determination under sub-section (2) of Section 11-B to refund the amount to the applicant and not to be transferred to the Consumer Welfare Fund but the relevant date is to be determined with reference to date of application laying claim to refund. The non-payment of refund to the applicant claimant within three months from the date of such application or in the case governed by proviso to Section 11-BB, non-payment within three months from the date....