- (1.) Heard Sri Pankaj Bhatia, learned counsel for the petitioners and Sri B.K.S. Raghuvanshi, learned counsel appearing on behalf of the respondents. By means of the present writ petition, petitioner is seeking a direction to the respondents to pay the refund as claimed in various refund claims along with interest thereon, filed under Section 11-BB of the Income Tax Act, 1961.
(2.) The petitioner filed some of the refund claims in the year 2005, some in the year 2006 and some in the year 2007. The details of the claim are mentioned in the order of adjudication dated 08.05.2007. The said refund claim has been allowed by order dated 08.07.2007. However, interest on the pending refund claim has been denied in view of the letter dated 26.04.2007, the correct date of letter is 20.04.2007, by which the petitioner has informed that they have decided not to claim the interest against the claim.
(3.) Learned counsel for the petitioner submitted that out of the total refund claims in respect of some of the refund claims, despite the refund claims being allowed, show cause notices have been issued by the Assistant Commissioner to deny the refund claims. However, in respect of some claims, refund has been granted. Submission of learned counsel for the petitioner is that, interest under Section 11BB of Central Excise Act, 1944 (hereinafter referred to as the "Act") being statutory and automatic, is payable without any claim in case, if refund is not made within thirty days from the date of receipt of the application. It does not depend upon the claim and cannot be denied on the ground of waiver of the claim of interest by the party. Thus, even though the petitioner has written a letter for not claiming the interest, the claim of interest cannot be denied under Section 11BB of the Act as it is mandatory and payable automatically.;