RANBAXY LABORATORIES LTD. versus UNION OF INDIA AND ORS.

Citation: [2011] 13 S.C.R. 1 · Decided: 21-10-2011 · Supreme Court of India · Bench: D.K. JAIN · Disposal: Disposed off
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Judgment (excerpt)

[2011] 13 (ADDL.) S.C.R. 1 
RAN BAXY LABORATORIES LTD. 
v. 
UNION OF INDIA AND ORS. 
(Civil Appeal No. 6823 of 2010) 
OCTOBER 21, 2011 
[D.K. JAIN AND ANIL R. DAVE, JJ.] 
Central Excise Act, 1944: s.11BB - Interest on delayed 
refund - Liability of revenue to pay interest u/s. 11 BB - Held: 
A 
B 
Commences from the date of expiry of three months from the C 
date of receipt of application for refund and not from the expiry 
of the said period from the date on which order of refund is 
made- Circular no.67016112002-CX dated 1.10.2002. 
Interpretation of statutes: Fiscal legislation - Held: Has 0 
to be construed strictly and one has to look merely at what is 
said in the relevant provision; there is nothing to be read in; 
nothing to be implied and there is no room for any intendment 
- Central Excise Act, 1944. 
The question which arose for consideration in these E 
appeals was whether the liability of the revenue to pay 
interest under Section 11 BB of the Central Excise Act, 
1944 commences from the date of expiry of three months 
from the date of receipt of application for refund or on the 
expiry of the said period from the date on which the order F 
of refund is made. 
Disposing of the appeals, the Court 
HELD: 1.1. Section 11BB of the Central Excise Act, 
1944 comes into play only after an order for refund has G 
been made under Section 11 B of the Act. Section 11 BB 
of the Act lays down that in case any duty paid is found 
refundable and if the duty is not refunded within a period 
1 
H 
2 
SUPREME COURT REPORTS [2011) 13 (ADDL.) S.C.R. 
A of three months from the date of receipt of the application 
to be submitted under sub-section (1) of Section 11B of 
the Act, then the applicant shall be paid interest at such 
rate, as may be fixed by the Central Government, on 
expiry of a period of three months from the date of receipt 
B of the application. The Explanation appearing below 
Proviso to Section 11 BB introduces a deeming fiction 
that where the order for refund of duty is not made by the 
Assistant Commissioner of Central Excise or Deputy 
Commissioner of Central Excise but by an Appellate 
c Authority or the Court, then for the purpose of this 
Section the order made by such higher Appellate 
Authority or by the Court shall be deemed to be an order 
made under sub-section (2) of Section 11 B of the Act. It 
is clear that the Explanation has nothing to do with the 
D postponement of the date from which interest becomes 
PC1¥able under Section 11 BB of the Act. Manifestly, 
interest under Section 11 BB of the Act becomes payable, 
if on an expiry of a period of three months from the date 
of receipt of the application for refund, the amount 
E claimed is still not refunded. Thus, the only interpretation 
of Section 11 BB that can be arrived at is that interest 
under the said Section becomes payable on the expiry 
of a period of three months from the date of receipt of the 
application under Sub-section (1) of Section 11B of the 
. F Act and that the said Explanation does not have any 
bearing or connection with the date from which interest 
under Section 11 BB of the Act becomes payable. [Para 
9] [10-G-H; 11-A-E] 
1.2. It is a well settled proposition of law that a fiscal 
G legislation has to be construed strictly and one has to 
look merely at what is said in the relevant provision; there 
is nothing to be read in; nothing to be implied and there 
is no room for any lntendment. Ever since Section 11 BB 
was inserted in the Act with effect from 26th May 1995, 
H the department has maintained a consistent stand about 
RANBAXY LABORATORIES LTD. v. UNION OF INDIA 
3 
AND ORS. 
its interpretation. Explaining the intent, import and the A 
manner in which it is to be implemented, the Circular 
dated 1st October, 2002 and Circular dated 2nd, June 
1998 clearly stated that the relevant date in this regard is 
the expiry of three months from the date of receipt of the 
application under Section 11B(1) of the Act. Thus liability B 
of the revenue to pay interest under Section 11 BB of the 
Act commences from the date of expiry of three months 
from the date of receipt of application for refund under 
Section 11 B(1) of the Act and not on the expiry of the said 
period from the date on which order of refund is made. c 
Accordingly, the jurisdictional Excise officers are required 
to determine the amount of interest payable to the 
assessees in these appeals, under Section 11 BB of the 
Act. [Paras 10, 12, 15, 16]
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