Order Date – 01 February 2023

Parties: Bombardier Transportation India Pvt Ltd Vs C.C.E. & S.T.-Vadodara-II

Facts –

• The Appellant, Bombardier Transportation India Pvt Ltd, filed a refund application on 13.06.2011 which was rejected and on an appeal the refund claim was allowed on 07.10.2011. However, the interest was not allowed. The same was rejected on the ground that the appellant have claimed the refund after the tribunal’s order vide letter dated 22.02.2022 therefore, the refund was sanctioned within three months from that date.

Issue –

• Whether the appellant is entitled for the interest on refund already sanctioned?

Order –

• The Tribunal held that the refund application was filed on 13.06.2011 shall be treated as refund application as mentioned under Section 11BB. Accordingly, the appellant is legally entitled for the interest after the expiry of three months from the date of refund application i.e. 13.06.2011.
• The Tribunal doesn’t find any ambiguity on the position that if the refund is not sanctioned within three months from the date of filing, the appellant is entitled for the interest on the refund sanctioned. Accordingly, in the present case also the appellant is legally entitled for the interest on refund.
• Hence the appeal is allowed.