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TMI Blog2025 (1) TMI 1149X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacturing and supplying of parts of painting system and paint shot falling under the ETH 84179000 of the First Schedule of the Central Excise Tariff Act, 1985, and was also registered with the Service Tax Department for providing maintenance and repair services & Work Contract Services. 2.2 During investigation, it was found that the appellant has charged and collected the Central Excise duty on their final product from their customers but had not deposited the same to the Govt. Exchequer as well as they had not filed their Excise Returns i.e., ER-1 since March 2014. Accordingly, Show Cause Notice dated 16.03.2018 was issued to the party for demand and recovery of Central Excise duty amounting to Rs. 15,61,272/- for the period March 2014 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme Court in case of UNION OF INDIA & ORS. V/s M/S. WILLOWOOD CHEMICALS PVT. LTD. & ANR. (2022 Liv Law (SC) 398) and UNION OF INDIA & ORS. V/s M/S. SARAF NATURAL STONE & ANR. (2022 Liv Law (SC) 398), and allowed the interest @6% per annum as sanctioned by the adjudicating authority. Hence, the present appeal. 3. Heard both the parties and perused the record. 4. Ld. Counsel for the appellant submits that the impugned order is not sustainable in law as the same has been passed without properly appreciating the facts and the law. He further submits that the present appeal pertains to refund of interest on the amount collected during investigation and does not pertain to interest on delayed refund payable under Section 11BB of the Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ently held that any amount deposited during investigation should be refunded; in case the assessee succeeds at the interest rate of 12% from the date of deposit till the amount is refunded. In support of his submissions, He relied upon the following decisions: Decision of Hon'ble Supreme Court in the case of CCE, Hyderabad vs. ITC Ltd. 2004 (12) TMI 90- Supreme Court. Decision of Hon'ble Bombay High Court in the case of Nelco Limited v. Union of India, 2002 (144) E.L.T. 56 (Bom.). Decision of Hon'ble Kerala High Court in the case of Sony Picture Network India Pvt. Ltd vs. UOI 2017 (5) TMI 864 - Kerala High Court. Decision of Hon'ble Gujrat High Court in the case of Commissioner of Customs (Preventive) vs. Ghaziabad S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner (Appeals) or @12% per annum as claimed by the appellant. I find that in view of the various decisions of the High Courts and various Benches of the Tribunal wherein it has been consistently held that interest on refund of deposit made during the investigation is required to be computed @12% per annum. I also find 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, reported in 2022 (5) TMI 1531 - Punjab and Haryana High Court and Sunrise Immigration Consultants Private Limited Vs. Union of India reported in 2023 (6) TMI 411. 7. Further, I find that this Tribunal has followed the ratio of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in the case of CGST vs. M/s Green Valliey Industries Pvt Ltd - 2023 (7) TMI 1176 - MEGHALAYA HIGH COURT, wherein the Hon'ble High Court vide its order dated 26.07.2023 has upheld the order of the Tribunal granting interest from the date of deposit @12% per annum till the refund is made. The relevant findings of the Hon'ble High Court in para 11 of its order is reproduced herein below : "11. The Tribunal has given adequate reasons in both the orders impugned, including the order by which the Department's application for correction or modification was rejected. According to the Tribunal, the deposit was made at a time when no quantified claim had been made on the assessee. On such basis, the Tribunal found that the deposit had not b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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