Union Of India & Anr vs Shreeji Colour Chem Industries

The Supreme Court held that the Gujarat High Court's direction to grant interest from 24.7.1991 under Section 11 BB of the Central Excise Act, 1944 was incorrect, as interest under this section is only payable after three months from the date of application for refund. The Court clarified that the introduction of Section 11 BB crystallized the position regarding interest on refunds, and thus the High Court's reliance on the earlier decision in Sandvik Asia Ltd. was misplaced. The Court set aside the High Court's order, emphasizing that the respondent was not entitled to interest prior to the stipulated period under Section 11 BB.