2022 (1) TMI 201

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..... ERS [ 2006 (1) TMI 55 - SUPREME COURT] has been pleased to grant interest @ 12% p.a. from the date of deposit till the date of grant of refund, with reference to Section 35FF of the Central Excise Act. The Court below is directed to disburse the interest on refund @ 12% p.a. from the date of deposit till the date of refund within a period of 45 days from the date of receipt or service of the copy of this order - Appeal allowed - decided in favor of appellant.
MR. ANIL CHOUDHARY, MEMBER (JUDICIAL) Shri Ashish Batra, Advocate for the appellant Shri Pradeep Gupta, Authorised Representative for the respondent ORDER The issue involved in this appeal is whether the appellant is entitled to interest on the amount deposited by it during the .....

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..... he appellant is entitled to interest on the amount so deposited during investigation under Section 35FF as: (i) It is urged that the action on the part of the respondent authorities in not sanctioning interest on the amount of ₹ 25,00,000/- from the date of deposit till the date of grant of refund is perverse, illegal and contrary to the scheme of the Central Excise Act, 1944 and various binding judgments of Courts and the Tribunal from time to time, in this regard. (ii) It is also submitted that the amount deposited by the appellant during investigation was not excise duty, inasmuch as at the time of making the said deposit there was neither any determination of excise duty payable by the appellant, nor was there any liability of .....

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..... se of Fujikawa Power & Anr. (supra), I allow the appeals and set aside the impugned order so far interest have been disallowed. The adjudicating authority is directed to grant interest from the date of deposit till the date of grant of refund @ 12% per annum. Such interest on refund should be granted within a period of sixty (60) days from the date of receipt of service or a copy of this order." 4. Learned Counsel for the appellant further urges that in view of the ruling of the Division Bench of Tribunal in Parle Agro (P) Ltd., vs. Commissioner, CGST-2021-TIOL-306-CESTAT-ALL, interest may be granted @ 12% p.a. from the date of deposit till date of realisation/ refund i.e. from 27.05.1998 on ₹ 15 lakh and from 30.09.1998 on ₹ 1 .....

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