2011 (12) TMI 427 - AT - Central Excise

Interest on the pre-deposit - Delayed payment of refund - Held that - In the present case there is a delay of 39 days beyond the period of 3 months from the date of final order passed by the Tribunal. We find that Tribunal in the case of CCE v. Kamdeep Marketing Pvt. Ltd. reported as (2010 (12) TMI 278 - CESTAT, DELHI) allowed the interest on delayed refund of pre-deposit relying upon the decision of Hon ble Supreme Court in the case of I.T.C. (2004 (12) TMI 90 - SUPREME COURT OF INDIA). In view of above decision, the appellants are entitled for interest on the delayed payment of pre-deposit and the Revenue is at liberty to recover from the concerned officers as per the Board s Circular - Decided in favour of assessee.

Summary

Issues: Delayed interest on pre-deposit refund

Analysis:
The appeal in this case was filed against an order where interest on the pre-deposit was not granted by the lower authority. The Tribunal had previously allowed the appeal by the appellants with consequential relief, resulting in the refund of the pre-deposit amount. However, there was a delay of 39 days beyond the stipulated 3 months for refund from the date of the final order. The appellants relied on a circular by the Board directing timely refund of pre-deposit with interest liability in case of default, which was cited in a Supreme Court case.

The Tribunal referred to a previous case where interest on delayed refund of pre-deposit was allowed, based on a Supreme Court decision. Following this precedent, the Tribunal ruled that the appellants were entitled to interest on the delayed payment of pre-deposit. The judgment also mentioned that the Revenue was authorized to recover any interest liability from the concerned officers as per the Board's Circular. Consequently, the appeal was allowed in favor of the appellants, granting them the entitled interest on the delayed pre-deposit refund.