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TMI Blog2018 (2) TMI 1662X X X X Extracts X X X X X X X X Extracts X X X X ..... r sanctioned/allowed to the Appellant as interest to the pre-deposit amount of ₹ 17,43,384/-, hence cannot be considered as principal amount and continues to be interest only - It cannot be denied that had the amount not appropriated, the Appellant would have received the interest amount of ₹ 11,73,799/- along with the principal amount of ₹ 17,43,384/- way back in 1995. Thus, on appropriation the interest is merged with the principle amount. In the result, the Appellant is entitled to interest on the amount of ₹ 11,73,799/-. Appeal allowed - decided in favor of appellant. - Central Excise Appeal No.11320 of 2015-SM - A/13740/2017 - Dated:- 28-11-2017 - Dr. D.M. Misra, Member (Judicial) Present Shri S.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was allowed to them vide order dated 27.6.2004. Thereafter, the Appellant requested to allow interest on the said refund amount and the ld. Commissioner (Appeals) remanded the matter to allow interest under Section 11BB of the CEA, 1944. By an order dated 1.4.2015, the Appellant was allowed interest of ₹ 57,19,453/- against the refund amount of ₹ 63,94,532/-and interest was not allowed on ₹ 11,73,799/- observing that the said amount relates to interest against the duty of ₹ 17,43,384.74, and interest on interest is not admissible. Aggrieved by the said order, the Appellant filed Appeal before the ld. Commissioner (Appeals), who in turn rejected their Appeal. Hence, the present Appeal. 3. Ld. Advocate for the Appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he amount of ₹ 11,73,799/- which was earlier appropriated against the confirmed demand, became due to the Appellant. The Department even though refunded the said amount of ₹ 11,73,799/-, but declined to pay interest on the same holding that the said amount was earlier sanctioned/allowed to the Appellant as interest to the pre-deposit amount of ₹ 17,43,384/-, hence cannot be considered as principal amount and continues to be interest only. I do not find merit in the contention of the Revenue that the appropriation of interest amount against the confirmed demand continues to retain the characteristics as interest only hence no interest is payable on the same. It cannot be denied that had the amount not appropriated, the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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