2014 (9) TMI 983 - HC - Central Excise

Denial of refund claim - Demand of interest - Held that - Tribunal instead of deciding the question whether the order of refund is valid or not has proceeded to decide the appeal regarding entitlement to interest on the said amount ordered to be refunded. That procedure is inappropriate. Therefore the proper course would be to set aside the impugned order and remand the matter to the Tribunal so that the Tribunal would decide both the appeals together on merits as well as on the question of payment of interest as it would be in the nature of consequential order. - Decided in favour of Revenue.

Summary

The High Court of Karnataka allowed the revenue's appeal against the Tribunal's order allowing interest on a refunded amount. The Court set aside the order and remanded the matter back to the Tribunal to decide both appeals together on merits and the question of interest payment.