UNION OF INDIA vs SHREEJI COLOUR CHEM INDUSTRIES

The Supreme Court upheld the Gujarat High Court's decision to grant interest on a delayed refund under the Central Excise Act, 1944, specifically referencing Section 11 BB, which mandates interest after three months from the date of application. The Court clarified that the entitlement to interest arises from the date the refund application was rejected, which was 24.7.1991, and not from the introduction of Section 11 BB. The Court affirmed the High Court's ruling that the respondent was entitled to interest at 9% per annum from the rejection date, thereby dismissing the appellant's arguments regarding the applicability of the new provisions.