RANBAXY LABORATORIES LTD. versus UNION OF INDIA AND ORS.

RANBAXY LABORATORIES LTD. versus UNION OF INDIA AND ORS.

Liability to pay interest under section 11BB of the Central Excise Act, 1944 commences from the date of expiry of three months from the receipt of application for refund, not from the expiry of three months from the date of refund order. The explanation to section 11BB does not alter this starting point.

Source-derived case information.

Parties
Appellant: Ranbaxy Laboratories Ltd.; Respondent: Union of India and Ors.
Jurisdiction
India
Judgment Date
21 October 2011
Procedural Posture
Civil Appeal / Final Decision by Supreme Court
Outcome
Appeals by assessee allowed; appeals by revenue dismissed.
Legal Topics
Interest on Delayed Refund, Interpretation of Fiscal Statutes, Central Excise Act Section 11 BB
Taxation Excise Administrative Law Interest on Delayed Refund Interpretation of Fiscal Statutes Central Excise Act Section 11 BB

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Parties

Ranbaxy Laboratories Ltd.

Appellant

Union of India and Ors.

Respondent

Procedural Posture

Civil Appeal / Final Decision by Supreme Court

Legal Issues

  1. 1 When does liability of revenue to pay interest on delayed refund under section 11BB of Central Excise Act, 1944 commence? Is it from three months after receipt of refund application or from three months after order of refund?

Ratio Decidendi

Liability to pay interest under section 11BB of the Central Excise Act, 1944 commences from the date of expiry of three months from the receipt of application for refund, not from the expiry of three months from the date of refund order. The explanation to section 11BB does not alter this starting point.

Court Disposition

Appeals by assessee allowed; appeals by revenue dismissed.

Orders

  • Jurisdictional Excise officers to determine and pay interest under section 11BB based on date of receipt of refund application.
  • Interest amount to be paid within eight weeks from date of order.