JUDGMENT S.L. Saraf, J.
1. Heard Shri Rajesh Kumar, learned Counsel for the petitioner and Shri Ajit Kumar Singh, learned Counsel appearing for the Union of India.
2. By this petition, the petitioner claims payment of interest on the amount of refund under the provisions of Section 11BB of the Central Excise Act, 1944 (hereinafter called as the Act).
3. The case of the petitioner is that by the order of the Tribunal the petitioner succeeded and the petitioner became entitled to refund from the authority concerned. However, since there was delayed payment of more than 3 months the petitioner was entitled to get interest on the amount of refund. The same was denied by the Tribunal vide order dated 28th August, 1998 by observing in para 11 of the order which reads as under :-
"As regards the claim for interest for delayed refunds under Section 11BB, we find that the said provision applies to duty ordered to be refunded under Section 11B(2). In the instant case, there is no order passed by the Assistant Commissioner under Section 11B(2). The question of awarding any interest does not therefore, arise."
4. Learned Counsel for the petitioner submits that the aforesaid interpretation of the provisions of Section 11BB is totally erroneous and is not in consonance with the provisions of explanation to Section 11BB of the Act which provides that where any order of refund is made by the Commissioner (Appeals), Appellate Tribunal or any Court against an order of the Assistant Commissioner of Central Excise, under Sub-section (2) of Section 11B, the order passed by the Commissioner (Appeals), Appellate Tribunal or, as the case may be, by the Court shall be deemed to be an order passed under the said Sub-section (2) for the purposes of this Section.
5. We find no ambiguity in the aforesaid provisions of explanation to Section 11BB of the Act. In the present case, admittedly the petitioner was entitled to refund and the same was paid to it after more than 3 months. Therefore, the petitioner is also entitled to interest on the said payment of refund. We direct the Tribunal to allow interest on the amount of refund. Consequently, we set aside the observation made in para 11 of the order dated 28th August, 1998 passed by the Tribunal. The matter is remanded back to the Tribunal to decide the quantum of interest which the petitioner is entitled.
The matter is disposed of.