Empire Industries Limited Vs Union of India (Bombay High Court)
Summary: The Bombay High Court considered a writ petition filed by Empire Industries Limited challenging the order-in-Original dated 24th March, 2026 passed by the Assistant Commissioner, CGST & CX, Mumbai, insofar as it denied statutory interest under Section 11BB of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994. The dispute concerned a refund amount of Rs. 53,05,173/- which was ultimately paid to the petitioner on 23rd June, 2026. The petitioner contended that the original refund application had been filed on 20th May, 2015 and that, under Section 11BB, interest was payable after expiry of three months from the date of receipt of the refund application until the date of actual refund.
Reliance was placed on the binding decision of Ranbaxy Laboratories Ltd. Vs. Union of India, reported in 2011 (273) E.L.T. 3 (S.C.), under which interest under Section 11BB becomes payable upon expiry of three months from receipt of the refund application and is not postponed until an appellate order allowing the refund. The petitioner submitted that the communication dated 5th January, 2026 was merely a continuation or reminder of the original refund claim and could not be treated as a fresh refund application. The Revenue contended that the refund arose pursuant to the CESTAT order dated 8th December, 2025 and argued that interest was payable only where the refund amount remained unpaid for three months from the relevant refund order. The Revenue also relied upon Section 11B of the Central Excise Act, 1944, as applicable to service tax through Section 83 of the Finance Act, 1994.
