In a recent case, the Gauhati High Court directed the department to release Interest on delayed refund under section 11BB of Excise Act to GAIL ( India Ltd ).
The petitioners challenged the order passed in Order in Original whereby the petitioners’ application seeking interest on the delayed refund of the excise duty was rejected. It was an admitted fact that the petitioner was entitled to refund of the excise duty in terms with the Notification No.33/99-CE dated 08.07.1999. However, it was on account of the delayed payment of the refund, the petitioners herein claimed interest. The interest claimed was determined to be Rs.4,48,92,856/- but was rejected by the impugned order dated 25.05.2024.
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The Division Bench of the Court vide judgment dated 08.11.2012 disposed of the said writ petition holding inter alia, that Section 11B of the Central Excise Act, 1944 (the Act of 1944) did not exclude claim of refund made in terms of the Notification dated 08.07.1999.
It was observed and directed that the petitioners therein would be entitled to interest under Section 11BB of the Act of 1944 on the excise duty refunded to them. The jurisdictional Excise Officer was, therefore, directed to determine the interest amount payable to the petitioners therein for the relevant period within a period of three months from the date of the said judgment.
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The Union of India preferred a review petition challenging the judgment dated 08.11.2012 in the Amalgamated Plantations Pvt. Ltd. Which was dismissed? The Department submitted that the question is pending consideration of the Supreme Court in SLP(C) No.016322/2018.
Justice Devashish Baruah directed the respondent authorities and, more particularly, the Assistant Commissioner, Central GST Division Dibrugarh to verify the amount of interest on the delayed refund of the dues of the petitioners and thereupon release the said amount within two months.
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Further, directed that the payment would be released only upon an undertaking being submitted by the petitioners to the effect that in case the Revenue succeeds in the SLP being SLP(C) No.016322/18, the interest amount paid on the basis of the instant order shall be reimbursed to the Department. S Mitra appeared on behalf of the petitioners and Keyal appeared on behalf of the respondents
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