2003 (5) TMI 78 - AT - Central Excise

Summary

Issues involved: Application for refund of deposited amount, direction to return the amount with interest as per rule, rejection of refund claim by Dy. Commissioner, contention on liability to pay interest on refund.

Summary:
The appellant filed an application seeking the refund of an amount deposited during an investigation, which was allowed by the Tribunal with consequential relief. However, a portion of the amount remained unreimbursed, leading to further petitions for refund. The Revenue rejected a claim for refund citing limitation, which was not deemed valid by the Tribunal considering the Revenue's appeal had been dismissed by the Supreme Court. The applicant contended they were entitled to a refund with interest, referencing a Supreme Court decision directing refund with interest. The Revenue argued against the liability to pay interest on refunds of pre-deposits, citing a Board's Circular. A recent decision by the Calcutta High Court was also considered, emphasizing the absence of a fixed rate of interest for such refunds.

In light of the arguments presented, the Tribunal directed the respondent to refund the remaining amount deposited by the appellant with interest at a rate of 12% from a specified date. The Tribunal also noted that delay in refund would attract liability for interest, ultimately ruling in favor of the appellant's refund request with interest.