2008 (2) TMI 682 - AT - Central Excise

Summary

Issues:
Calculation of interest on pre-deposit.

Analysis:
The appeal was filed by the Revenue against an order allowing the refund of a pre-deposit. The main issue raised was the calculation of interest on the pre-deposit made on 2-5-91. The Tribunal had remanded the matter multiple times, with the final order setting aside the demand on 4-12-03.

The Commissioner (Appeals) determined the periods for which interest was payable on the pre-deposit. These periods were from 21-4-1994 to 3-10-2000, 14-3-2001 to 31-7-2002, and 4-3-2004 to 31-12-2004. The Commissioner's decision was based on guidelines issued by the Central Board of Excise and Customs in a Circular dated 8-12-2004 regarding the payment of interest on pre-deposits.

The Tribunal found that the Commissioner (Appeals) had correctly applied the Board's Circular in determining the interest payable on the pre-deposit. As the impugned order was in accordance with the Circular, the Tribunal concluded that there was no error in the decision and dismissed the appeal. The judgment was dictated in the open court by the Vice-President for the Bench.

This analysis highlights the key issue of interest calculation on the pre-deposit, the Tribunal's consideration of the remand proceedings, the Commissioner's determination of interest periods, and the Tribunal's decision based on the Board's Circular, ultimately leading to the dismissal of the appeal.