9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2025 (2) TMI 947 - AT - Central ExciseInterest on the refund deposited during investigation - rate of interest - relevant dates for calculation of interest - HELD THAT - In view of the various decisions of the High Court and various Benches of the Tribunal wherein it has been consistently held that interest on refund of deposit made during investigation is required to be computed @ 12% per annum. It is found that the jurisdictional High Court of this Tribunal has already held that rate of interest applicable in such cases is 12% per annum as held in the cases of CCE Panchkula Vs. Riba Textiles Limited 2022 (5) TMI 1531 - PUNJAB AND HARYANA HIGH COURT Punjab and Haryana High Court and Sunrise Immigration Consultants Private Limited Vs. Union of India 2023 (6) TMI 411 - PUNJAB AND HARYANA HIGH COURT . Reference also made to the decision of the Tribunal in the case of Indore Treasure Market City Pvt Ltd 2024 (5) TMI 367 - MADHYA PRADESH HIGH COURT wherein the Tribunal after considering the various decisions of the Courts has held that the assessee is entitled for interest on the amount of refund sanctioned @12% to be calculated from the date of payment till the date of disbursement. Also in the case of Raghuveer Metal Industries Ltd 2023 (12) TMI 371 - CESTAT NEW DELHI the Tribunal has held that the appellant is entitled to receive interest at the rate of 12% from the date of deposit of the amount till the date of refund thereof. Conclusion - The appellant is entitled to the rate of interest @ 12 % per annum on the amount deposited during investigation. Appeal allowed.
The present case involves an appeal against an order passed by the Commissioner (Appeals) upholding the Order-in-Original, which demanded duty, interest, and imposed a penalty on the appellant, a manufacturer of electrical switches and accessories. The appellant had deposited Rs. 10 lakhs during an investigation by the DGCEI staff, leading to a dispute over the entitlement to interest on this amount.**Issues Presented and Considered:**1. Whether the appellant is entitled to interest on the refund of Rs. 10 lakhs deposited during investigation.2. If so, at what rate and from which date.**Issue-Wise Detailed Analysis:****Relevant Legal Framework and Precedents:**The appellant claimed entitlement to interest on the deposited amount based on various decisions by different benches of the Tribunal and High Courts. The appellant relied on precedents such as Amidhara Texturising (P) Ltd. Vs. Commr. Of Central Excise, G.S. Promotors & Developers Vs. Commissioner of CGST, and others.**Court's Interpretation and Reasoning:**The Tribunal considered the submissions of both parties and reviewed the relevant legal precedents. It noted that the issue revolved around whether the appellant could claim interest on the deposited amount during the investigation.**Key Evidence and Findings:**The Tribunal found that the High Courts and various benches of the Tribunal consistently held that interest on refunds of deposits made during investigations should be calculated at 12% per annum. It cited decisions like CCE, Panchkula Vs. Riba Textiles Limited and Sunrise Immigration Consultants Private Limited Vs. Union of India to support this conclusion.**Application of Law to Facts:**After analyzing the legal precedents and arguments presented by both parties, the Tribunal determined that the appellant was indeed entitled to claim interest at a rate of 12% per annum on the deposited amount from the date of deposit until the refund date.**Treatment of Competing Arguments:**The appellant argued for interest on the deposited amount, while the respondent contended that no provision existed for such interest prior to a specific amendment. The respondent also referred to a decision by the Hon'ble Apex Court in Union of India vs. Willowood Chemicals Pvt. Ltd.**Conclusions:**The Tribunal allowed the appeal filed by the appellant and held that the appellant was entitled to claim interest at a rate of 12% per annum on the amount deposited during the investigation. The Original Authority was directed to compute and pay the interest accordingly to the appellant.**Significant Holdings:**The Tribunal's decision established the principle that in cases where an appellant is eligible for interest on a refund of a deposited amount during an investigation, the interest rate should be 12% per annum. The final determination was in favor of the appellant, granting them the claimed interest.The Tribunal's decision in this case aligns with established legal precedents and ensures consistency in the treatment of similar issues regarding interest on refunded amounts deposited during investigations.
|
