Ujjal Bhuyan, J.

1. This Judgment will dispose of W.P. (C) No. 1166/2012 and W.P. (C) No. 2325/2012. Question for consideration in both the writ petitions is the entitlement of the petitioners to interest under section 11BB of the Central Excise Act, 1944 on the delayed excise duty refund by the department to the petitioners.

2. The relevant facts of the two cases may be briefly noted.

W.P. (C) No. 1166/2012

3. Petitioner is a company incorporated under the Companies Act, 1956, owning amongst others the Chabua Tea Estate in the district of Dibrugarh, Assam. Petitioner is engaged in the business of cultivation and manufacture of tea and tea waste, which are exigible to excise duty under Chapter-9 of the Schedule to the Central Excise Tariff Act, 1985, having central excise registration number.

4. The Central Government formulated new industrial policy in the year 1997 giving various incentives to stimulate industrial development in the North Eastern Region. Such incentives included exemption from payment of excise duty for a period of 10 years from commencement of production.

5. Pursuant thereto, Department of Revenue, Ministry of Finance, Government of India issued Notification No. 33/99-CE dated 08.07.1999 giving concessions in excise duties. The said notification was issued in exercise of the powers conferred by Sub-section (1) of Section 5A of the Central Excise Act, 1944 read with Section 3(3) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 and Section 3(3) of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978. By the said notification, the goods specified in the schedule and cleared from a unit located in any one of the States in the North Eastern Region, including in the State of Assam, were exempted from excise duty leviable thereon.

6. Petitioner filed a claim on 18.10.2004 before the Assistant Commissioner of Central Excise, Dibrugarh for refund of excise duty paid for the period from 08.07.1999 to 28. 02.2003 amounting to Rs. 1,10,61,418/-. The claim was made in terms of the aforesaid notification dated 08.07.1999, as amended.

7. The Assistant Commissioner of Central Excise, Dibrugarh (respondent No. 4) vide order dated 10.05.2005 held that the petitioner was eligible for exemption under notification dated 08.07.1999. Thereafter, respondent No. 4 vide order dated 05.08.2005 sanctioned refund of Rs. 77,52,409/- in favour of the petitioner out of the claimed amount of Rs. 1,10,61,418/-. Respondent No. 4 stated that the refund claim for the months of August, 1999, September, 1999, May, 2000, September, 2000, November, 2001 and December, 2001 involved amounts of over Rs. 5 lakhs, which required audit clearance. Thus, an amount of Rs. 33,09,009/- (Rs. 1,10,61,418/- - Rs. 77,52,409/-) was kept pending.

8. The sanctioned amount of Rs. 77,52,409/- was refunded to the petitioner.

9. Commissioner of Central Excise, Dibrugarh (respondent No. 3) preferred appeal against aforesaid order dated 5.8.2005. The appellate authority i.e. Commissioner (Appeals), by order dated 31.01.2006 rejected the appeal and upheld the order dated 05.08.2005.

10. Revenue thereafter preferred appeal before the Customs, Excise and Service Tax Appellate Tribunal, Kolkata (CESTAT). However, CESTAT by order dated 21.6.2011 dismissed the appeal filed by the Revenue.

11. Against order of CESTAT, Revenue filed further appeal before this Court, which was registered as C.Ex. Appeal No. 5/2011. This Court by order dated 19.12.2011 dismissed the appeal holding that no substantial question of law arose in the appeal.

12. Inspite of such orders of the appellate authorities rejecting the appeals filed by the Revenue, the balance amount of Rs. 33,09,009/- was not refunded to the petitioner. Petitioner, therefore, filed the related writ petition seeking a direction to the respondents to refund the aforesaid amount to the petitioner alongwith applicable interest.

W.P. (C) No. 2325/2012

13. Petitioner No. 1 is a partnership firm