In Brief
The Union of India appealed a High Court order awarding interest on a delayed excise duty refund. The respondent, Hamdard Laboratories, had been classified incorrectly by revenue authorities and later won a Supreme Court judgment confirming the correct tariff classification. After claiming refund on 25 August 1999, the respondent received the refund amount by cheque dated 15 November 2000, but without interest. The Supreme Court held that interest under Section 11-BB accrues from the expiry of three months from the application's receipt date, regardless of when deficiencies are cured. The three-month adjudication period is mandatory and cannot be extended. Since the refund was made after three months from receipt, interest was due. The appeal was dismissed.
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