Case Law Details
Bhilosa Industries Pvt. Ltd. Vs C.C.E. & S.T. (CESTAT Ahmedabad)
Introduction: In the case of Bhilosa Industries Pvt. Ltd. vs. C.C.E. & S.T., the main issue revolves around the entitlement of interest on the sanctioned refund and the application of Section 11BB of the Central Excise Act, 1944.
Detailed Analysis: The crux of the matter lies in the timeline of the refund claim filed on 19.05.2005 and its sanction on 04.04.2016. Section 11BB mandates interest if the duty ordered to be refunded is not processed within three months from the application date. In this case, the Appellant claimed interest from 20-8-2005 to the actual payment date, 04-4-2016.
The CESTAT Ahmedabad’s analysis emphasizes the statutory obligation for the department to sanction refunds with interest after three months from the filing date. The key reference is Section 11BB, specifying that interest is payable from three months after the application date until the duty refund.
The appellant’s argument is supported by various legal precedents, including the Hon’ble Supreme Court’s judgment in the case of M/s. Ranbaxy Laboratories Ltd. vs. Union of India (2011) 273 E.L.T. 3 (S.C.).
Please become a Premium member. If you are already a Premium member, login here to access the full content.
