Interest On Delayed Refund Is Statutorily Mandated After 3 Months: CESTAT Applies 6% Interest U/S 11BB Of Central Excise Act

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled that interest on delayed refunds is statutorily mandated after 3 months, applying 6% interest under Section 11BB of the Central Excise Act. This significant decision reinforces the taxpayer's right to receive interest on delayed refunds beyond a specified period. The tribunal's ruling ensures that tax authorities are held accountable for delays in processing refunds, providing financial compensation to businesses. This promotes efficiency in tax administration and provides relief to taxpayers by compensating them for the time value of money withheld due to departmental delays.