Circular No. 130/41/95-CX
dated 30/5/95
F.No. 268/29/95-CX-8
Government of India
Ministry of Finance
Department of Revenue, New Delhi

Subject :    Interest on delayed refunds (proposed Section 11BB) - Regarding

        Your attention is invited to the Finance Act, 1995 wherein a new section 11BB under Central Excise & Salt Act, 1944 wherein a new section on delayed refunds. Which the enactment of the Finance Act, the the Department has become liable to pay interest at the prescribed rate in case of various types of refund which are not processed within three months from the date of the receipt of refund applications under section 11BB of CE & SA, 1944, till the date of refund of such duty. In this regard you may also refer to Notification No. 22/ 95-CE (NT) dated 29.55.95. which fixes such interest @ 15% payable in respect of such delayed refunds.

2.    Keeping the above in view, the following instructions are being issued regarding refunds claimed under section 11B of CE&SA, 1944:-

a)    Refund application must invariable be filed in the office of the Asstt. Collector and Not with the Range Superintendent.

b)    Immediately on receipt of an application, the same must be scrutinised by an officer, not below the rank of an Inspector for its completeness.

Check List of various documents which should be filed
with the Refund Claims