2024 (11) TMI 549

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....is is the second round of litigation before the Tribunal. Earlier, this Tribunal vide its Final Order No. 53910 of 2015 dated 04.12.2015 in the matter, allowed the rebate claim filed by the appellant that was dismissed by the original authority vide order-in-original No. 442/2007 dated 28.01.2008, on the ground of time bar. 3. Pursuant to the aforesaid order of the Tribunal, it is stated by the learned counsel that while the rebate claim for the aforesaid amount was sanctioned, no interest was however granted by the adjudicating authority vide its order No. 12/OPM/AC/Div-Mandoli/Legacy Refund/2022 dated 12.05.2023. In appellate proceedings, the learned Commissioner (Appeals) vide Order-in-Appeal No. 42/ST/DLH/2024 dated 26.02.2024 partia....

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....f the learned Commissioner (Appeals) and adds that this being a case of refund would ipso factio be covered by the Hon'ble Apex Court's decision in the case of Mafatlal Industries Limited vs. Union of India 1996 (12) TMI 50-Supreme Court. 7. The question with regard to payment of interest on delayed refund is categorically covered in terms of Section 11BB of the Central Excise Act as made applicable to service tax matters. Explanation thereto then read 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....

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....he Act comes into play only after an order for refund has been made under Section 11B of the Act. Section 11BB of the Act lays down that in case any duty paid is found refundable and if the duty is not refunded within a period of three months from the date of receipt of the application to be submitted under sub-section (1) of Section 11B of the Act, then the applicant shall be paid interest at such rate, as may be fixed by the Central Government, on expiry of a period of three months from the date of receipt of the application. The Explanation appearing below Proviso to Section 11BB introduces a deeming fiction that where the order for refund of duty is not made by the Assistant Commissioner of Central Excise or Deputy Commissioner of Centr....