UNION OF INDIA & ORS. versus M/S. HAMDARD (WAQF) LABORATORIES

UNION OF INDIA & ORS. versus M/S. HAMDARD (WAQF) LABORATORIES

The adjudicatory process for refund must conclude within three months; the liability for interest under Section 11-BB commences from expiry of three months from the date of receipt of application for refund. In this case there was delay, so assessee is entitled to interest.

Source-derived case information.

Parties
Appellant: Union of India & Ors.; Respondent: M/s. Hamdard (Waqf) Laboratories
Jurisdiction
India
Judgment Date
25 February 2016
Procedural Posture
Civil Appeal / Appeal by Special Leave From High Court Order
Outcome
Appeal dismissed
Legal Topics
Interest on Delayed Refunds, Refund Procedure, Excise Classification
Central Excise Tax Law Interest on Delayed Refunds Refund Procedure Excise Classification

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Parties

Union of India & Ors.

Appellant

M/s. Hamdard (Waqf) Laboratories

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From High Court Order

Legal Issues

  1. 1 Whether interest under Section 11-BB of Central Excise Act, 1944 is payable for delay in refund of duty after three months from date of refund application.
  2. 2 Whether the liability to pay interest commences from the expiry of three months from the date of application or from the date of removal of defects.

Ratio Decidendi

The adjudicatory process for refund must conclude within three months; the liability for interest under Section 11-BB commences from expiry of three months from the date of receipt of application for refund. In this case there was delay, so assessee is entitled to interest.

Court Disposition

Appeal dismissed

Orders

  • High Court order affirmed directing revenue to pay interest under Section 11-BB of the Central Excise Act, 1944 from 26 November 1999 to 15 November 2000.