Gauhati High Court Directs Assistant Commissioner To Release Amount Of Interest On Delayed Excise Duty Refund To GAIL

The Gauhati High Court has directed that assistant commissioner to release the amount of interest on delayed excise duty refund to GAIL India.

The bench of Justice Devashis Baruah has observed that the Division Bench writ petition, while disposing of the writ petition, held that Section 11B of the Central Excise Act, 1944 did not exclude a claim of refund made in terms of the notification dated 08.07.1999. The Division Bench observed and directed that the petitioners would be entitled to interest under Section 11BB on the excise duty refunded to them. The jurisdictional excise officer was, therefore, directed to determine the interest amount payable to the petitioners within a period of three months from the date of the judgment.

The petitioners/assessee has challenged the order by which the petitioners' application seeking interest on the delayed refund of the excise duty was rejected.

The petitioner was entitled to a refund of the excise duty in accordance with Notification No. 33/99-CE dated 08.07.1999. However, on account of the delayed payment of the refund, the petitioners claimed interest. The interest claimed was determined to be Rs. 4,48,92,856/- but was rejected.

The petitioner contended that the petitioners are not adverse to giving an undertaking to the effect that if the amount to which the petitioners are entitled is paid within a timeframe, the petitioners would be bound by the outcome of the SLP. The interest amount would be returned back to the department if the department succeeds in the SLP proceedings.

The court directed the respondent authorities and, more particularly, the Assistant Commissioner, Central GST Division Dibrugarh, to verify the amount of interest on the delayed refund of the dues of the petitioners and release the amount within two months. The payment would be released only upon an undertaking being submitted by the petitioners to the effect that in case the department succeeds in the SLP, the interest amount paid on the basis of the order shall be reimbursed to the department.

Counsel For Appellant: S Mitra

Counsel For Respondent: SC Keyal

Case Title: GAIL (India) Limited And 2 Ors. Versus The Union Of India

Case No.: Case No. : WP(C)/3586/2024

Click Here To Read The Order