CESTAT explains Section 11BB provisions related to Interest on delayed refunds

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 clai...