The Central Excise Act, 1944
11BB. INTEREST ON DELAYED REFUNDS. –
1INTEREST 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, 2not below ten per cent and not exceeding thirty per cent per annum as is for the time being fixed 3by the Board, on such duty from the date immediately after the expiry of three months from the date of receipt of such application till the date of refund of such duty :
Provided that where any duty ordered to be refunded under sub-section (2) of section 11B in respect of an application under sub-section (1) of that section made before the date on which the Finance Bill, 1995 receives the assent of the President, is not refunded within three months from such date, there shall be paid to the applicant interest under this section from the date immediately after three months from such date, till the date of refund of such duty.
Explanation : Where any order of refund is made by the Commissioner (Appeals), Appellate Tribunal 4[, National Tax Tribunal] or any court against an order of the Assistant Commissioner of Central Excise, under sub-section (2) of section 11B, the order passed by the Commissioner (Appeals), Appellate Tribunal or, as the case may be, by the court shall be deemed to be an order passed under the said sub-section (2) for the purposes of this section.
Where an assessee maintains a personal ledger account, duty is paid by way of debit therein and goes to reduce the amount of deposit paid by the assessee. It is not a mere adjustment entry; it is effective payment; Samrat International (P) Ltd. v. Collector of Central Excise, AIR 1991 SC 369.
Section 11B is an independent section under which appellant would be entitled to work out his claim for refund notwithstanding the fact that the appellant has not chosen to file the appeal against the RT 12 assessment of the Superintendent of Central Excise; Bharat Earth Movers Ltd. v. Collector of Central Excise, 1991 (52) ELT 600 (Tribunal).
Section 11B does not only apply prospectively but also retrospectively to the pending cases in which refund has been claimed; Union of India v. I.T.C. Limited, AIR 1993 SC 2135.
1. Ins. by Act 22 of 1995, sec. 75 (w.e.f. 26-5-1995).
2. Subs. by Act 14 of 2001, sec. 126, for “not below ten per cent.” (w.e.f. 11-5-2001).
3. Subs. by Act 10 of 2000, sec. 102, for “by the Board” (w.e.f. 12-5-2000)
4. Ins. by Act 49 of 2005, sec. 30 and Sch., Pt. VII-4 (w.e.f. 28-12-2005).