TaxTMI 
TaxTMI 
2026 (9) TMI 546
X X X X Extracts X X X X
X X X X Extracts X X X X
....ging the order-in-Original dated 24th March, 2026 passed by the respondent No. 3 to the extent, it denies statutory interest, payable under Section 11BB of the Central Excise Act, 1944 r/w Section 83 of Chapter V of Finance Act, 1994, after the expiry of three months from the date of refund application from 20th August, 2015 till the date, the aforesaid amount of Rs. 53,05,173/- was paid to the petitioner on 23rd June, 2026. 2. The petitioner contends that in the Judgment of Ranbaxy Laboratories Ltd Vs. The Union of India 2011 (273) E.L.T. 3 SC and other binding decisions of this court, it was held that the interest is payable from the expiry of three months from the date of filing of the application till the date of refund under Section....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 5. He submitted that the refund claim arises from a case where duty becomes refundable as a consequence of CESTAT order issued on 8th December, 2025. The respondent further relied upon Section 11BB of the Central Excise Act, 1944. He further stated that the refund claim against the subject order has been filed by the Assessee vide their office letter dated 5th January, 2026. According to him, as per Section 11BB of the Central Excise Act, 1944 the interest is payable only in cases where the refund amount is not paid within a period of three months from the date of order of refund. He therefore, prayed for dismissal of the petition. 6. We have gone through the contentions raised by the learned Counsel appearing for both the sides. We h....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lear that the Explanation 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 be....