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TMI Blog2008 (7) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... e Commissioner on 23-9-1997 confirming demand of duty and imposing penalties. The said order was set aside by Tribunal on 11-11-1998 and the matter was remanded to Commissioner for de novo adjudication. Commissioner in remand proceedings, confirmed duty of Rs. 94,45,276/- and imposed penalty of Rs. 1.25 crores vide his order dated 4-3-1999. The said order of the Commissioner was challenged by the appellant before Tribunal. The application under Section 35F was also filed before Tribunal. It is seen that vide Stay order dated 7-10-1999, pre-deposit of duty and penalties was dispensed with by taking into account the appellant's financial condition, as the same were declared a sick unit by BIFR. However, no stay against the recovery of the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the penalty amount. 4. Ld. Advocate Shri B.L. Narsimhan appearing before us submitted that the Department was not justified in adjusting the sanctioned rebate claims against the dues confirmed against the appellant inasmuch as the duty and penalty confirmation was not final and they had filed an appeal before Tribunal. As such they are entitled to the interest from the date of adjustment of the dues against the sanctioned rebate claims inasmuch as the said rebate claims have not actually been refunded to them within a period of 3 months from the date of their claim. For the above preposition, they have relied upon the following decisions:- (1) Himson Textiles Engg. Ind. P. Ltd. v. CCE, Surat [2005 (190) E.L.T. 449 (Tri.-Mum.)] (2) Volta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hem. As such, we hold that the appellant would be entitled to interest starting from the expiry of the 3 months period from the date of passing of the order by the Tribunal till the date of actual refund. 6. As regards the interest on the penalty amount, deposited by the appellant by way of adjustment against rebate claims, we hold that no differentiation can be made in duty and penalty for the purpose of interest. The deposits so made by the appellant are required to be refunded to them along with interest, on the success of their appeal before the higher appellate forum. It is well settled that such deposits are in the nature of interim deposits subject to the outcome of the final proceedings. The refund of pre-deposit, whether on accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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