2019 (10) TMI 161 - AT - Central Excise

Entitlement of interest on the refund - refund of pre-deposit made by the appellant in terms of Stay Order passed by the Tribunal - HELD THAT - The refund application was filed on 07.09.2015, after the receipt of the Tribunal s order dated 22.07.2015 allowing their appeal. The refund was sanctioned by the Revenue on 06.11.2015 i.e. before the expiry of the period of three months. In such a scenario, the question of any claim of interest does not arise - appeal dismissed - decided against appellant.

Summary

Issues:
1. Payment of interest on refund granted by Tribunal.

Analysis:
The judgment by the Appellate Tribunal CESTAT ALLAHABAD, delivered by Hon'ble Smt. Archana Wadhwa and Hon'ble Mr. Anil G. Shakkawar, addressed the issue of interest payment on a refund granted to the appellant. The appellant, represented by Ms. Stuti Sagi, raised the contention that interest should be paid on the refund amount resulting from the Tribunal's decision in their favor. The refund in question pertained to a pre-deposit made by the appellant as per a Stay Order issued by the Tribunal.

The appellant's advocate, Ms. Stuti Sagi, acknowledged that the refund application was submitted on 07.09.2015, subsequent to the Tribunal's order dated 22.07.2015, which allowed their appeal. Notably, the Revenue sanctioned the refund on 06.11.2015, within the stipulated three-month period. Given this timeline, the Tribunal concluded that there was no basis for a claim of interest on the refund amount. Consequently, the appeal for interest payment was rejected.

In summary, the judgment clarified that in cases where a refund is granted within the prescribed time frame following the Tribunal's decision, the question of interest payment does not arise. The decision emphasized adherence to the specified timelines for refund processing, thereby affirming the rejection of the appellant's appeal for interest payment in this instance.