2009 (1) TMI 684 - AT - Central Excise

Summary

Issues involved: Refund claim rejection, interest on refund, completion of de-novo proceedings.

Refund claim rejection: The Tribunal remanded the matter for de novo adjudication after setting aside the Order-in-Original. The appellants filed a refund claim which was initially rejected by the original adjudicating authority. The Commissioner (Appeals) later sanctioned the refund but rejected the interest component. The Tribunal observed that when an appeal is allowed by way of remand, the assessee is entitled to interest on the refund of pre-deposit. The Assistant Commissioner eventually allowed interest for 58 days, leading to the present appeal.

Interest on refund: The appellants argued that pre-deposit should have been refunded without delay once the Tribunal remanded the matter in 1997. They contended that interest on the refund should have been paid from the date of the refund claim in October 1998. The Tribunal upheld the claim for interest, citing relevant decisions and emphasizing that the refund was due on the date of filing the claim.

Completion of de-novo proceedings: The appellants highlighted the failure of the Assistant Commissioner to complete the de-novo proceedings despite the remand order. They argued that there was no demand on the date of the refund claim and asserted that interest should be calculated from the date of filing. The Tribunal allowed the appeal, directing the original adjudicating authority to determine the quantum of interest payable in accordance with the law.