Interest on delayed refunds
Section 11BB of the Central Excise Act, 1944 deals with interest on delayed refunds. [11-BB. Interest on delayed refunds.-- If any duty ordered to be refunded under sub-section (2) of Section 11-B to any applicant is not refunded within three months from the date of receipt of application under sub-section (1) of that section, there shall be paid to that applicant interest at such r The Act came into force on 28 Feb 1944.
1[11-BB. Interest on delayed refunds.-- If any duty ordered to be refunded under sub-section (2) of Section 11-B to any applicant is not refunded within three months from the date of receipt of application under sub-section (1) of that section, there shall be paid to that applicant interest at such rate, 2[not below five per cent and not exceeding thirty per cent per annum as is for the time being fixed 3[by the Central Government, by notification in the Official Gazette,]] on such duty from the date immediately after the expiry of three months from the date of receipt of such application till the date of refund of such duty:
Provided that where any duty ordered to be refunded under sub-section (2) of Section 11-B in respect of an application under sub-section (1) of that section made before the date on which the Finance Bill, 1995 receives the assent of the President, is not refunded within three months from such date, there shall be paid to the applicant interest under this section from the date immediately after three months from such date, till the date of refund of such duty.
Explanation.--- Where any order of refund is made by the Commissioner (Appeals), Appellate Tribunal 4[National Tax Tribunal] or any court against an order of the Assistant 5[Principal Commissioner of Central Excise or Commissioner of Central Excise] 6[or Deputy 5[Principal Commissioner of Central Excise or Commissioner of Central Excise]], under sub-section (2) of Section 11-B, the order passed by the Commissioner (Appeals), Appellate Tribunal 4[National Tax 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.]
Section 11BB, The Central Excise Act, 1944 (Act 1 of 1944).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Commr. of Cen. Exc. Thane-iii vs Ballarpur Industries LTD
Court's Decision & Legal Precedent
The liability of the revenue to pay interest under Section 11BB of the Central Excise Act, 1944 commences from the date of expiry of three months from the date of receipt of application for refund under Section 11B(1) of the Act and not on the expiry of said period from the date on which the order of refund is made. Interest accrues automatically and is not dependent on the appellate authority's orders or the ultimate date of refund sanctioning.
On this section: Core provision examined; prescribes interest payable on duty not refunded within three months from date of receipt of application; the Explanation clause creates deeming fiction for orders by appellate authorities
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Commr. of Cen. Excise, Pune vs Garware Wall Ropes LTD
Court's Decision & Legal Precedent
The liability of the revenue to pay interest under Section 11BB of the Central Excise Act, 1944 commences from the date of expiry of three months from the date of receipt of application for refund under Section 11B(1) of the Act and not on the expiry of the said period from the date on which order of refund is made. This principle applies regardless of whether the refund order is made by the original administrative authority or by an appellate authority, because the Explanation to Section 11BB establishes that orders by appellate authorities are deemed to be orders under Section 11B(2) for purposes of determining whether interest is payable, but this deeming provision does not affect the commencement date of interest liability, which remains tied to the application date.
On this section: Provides for payment of statutory interest when duty ordered to be refunded is not actually refunded within three months from date of receipt of application, establishing the core provision under interpretation
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
3 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 3 instruments name this provision in its title or its text without being made under it.
Questions about Section 11BB
What have the courts held on Section 11BB of the Central Excise Act?
Commr. of Cen. Exc. Thane-iii vs Ballarpur Industries LTD (21 Oct 2011) is the leading judgment on this section among those set out below: Core provision examined; prescribes interest payable on duty not refunded within three months from date of receipt of application; the Explanation clause creates deeming fiction for orders by appellate authorities. Another 1 judgment on this section is set out below, all of them from the Supreme Court.
How do I find court cases under Section 11BB of the Central Excise Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Central Excise Act 1944 11BB, section 11BB Central Excise Act 1944, section 11BB of the Central Excise Act. People searching for it also type 11bb of central excise act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Commr. of Cen. Exc. Thane-iii vs Ballarpur Industries LTD (21 Oct 2011).
What should I read with Section 11BB of the Central Excise Act, and has it changed?
Its own text turns on section 11 (Recovery of sums due to Government), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it. The rules and notifications made under it are where it actually bites, and there are 3: most recently Notification No.17/2002-CE (N.T) (2002), then Notification No.24/2001-CE (N.T) (2001), and 1 more.
When did Section 11BB of the Central Excise Act come into force?
Section 11BB of the Central Excise Act, cited as Central Excise Act 1944 11BB, came into force on 28 Feb 1944, having been enacted on 24 Feb 1944. It is in force as at the date shown on this page.
Other sections of this Act
- 4. Valuation of excisable goods for purposes of charging of duty of excise1751 words
- 11A. Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded1442 words
- 11B. Claim for refund of duty and interest, if any, paid on such duty1342 words
- 35B. Appeals to the Appellate Tribunal1302 words
- 32F. Procedure on receipt of an application under Section 32-E1167 words
- 11AC. Penalty for short-levy or non-levy of duty in certain cases1093 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 17 Oct 2026. This page is not a substitute for legal advice.