Qualcomm India Private Limited Vs Union of India and others (Bombay High Court)
Summary: Qualcomm India Private Limited, engaged in providing support services primarily to its foreign affiliates, filed 19 applications for refund of unutilized CENVAT credit under Rule 5 of the CENVAT Credit Rules, 2004 for the period June 2008 to December 2014. The applications claimed an aggregate refund of Rs.12,47,29,078, while Rs.11,54,28,287 was ultimately sanctioned. The refunds were granted beyond three months from the respective dates of application.
The petitioner therefore sought interest under Section 11BB of the Central Excise Act, 1944, as applicable to service tax through Section 83 of the Finance Act, 1994. The Revenue contended that there was no intentional delay and that the petitioner had an alternative appellate remedy. The Bombay High Court held that Section 11BB does not distinguish between intentional and unintentional delay. Once a refund is not made within three months from receipt of the refund application, statutory interest becomes payable as a matter of right. Relying principally on Ranbaxy Laboratories Limited Vs. Union of India, the Court held that the interest period commences from the date immediately after expiry of three months from receipt of the refund application and continues until payment.
