The Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) allowed the Interest on refund of pre-deposit amount @6% for Hasmukh Tobacco Products.
Shri P.P. Jadeja appeared on behalf of the appellant and Shri Vijay G Iyengar appeared on behalf of the Revenue.
Hasmukh Tobacco Products, the appellant questioned that whether he is entitled to interest from the date of deposit or pre-deposit or after the three months from the date of filing of refund application.
The appellant contended that the amount of refund which was granted was deposited as predeposit. In the case of pre-deposit, the interest is payable right from the date of pre-deposit which is settled in various judgments.
The Tribunal observed that the limited issue to be decided is whether the appellant is entitled to interest from the date of deposit or pre-deposit in a case where the Tribunal has finally passed the final order setting aside the demand. I find that on this issue Hon’ble Supreme Court/ High Courts and this Tribunal have taken a view that in case of pre-deposit, interest should be given from the date of deposit.
Given the above judgments, it was settled that the appellant is entitled to the interest on refund of the pre-deposit amount @6% from the date of deposit till the date of refund. A Coram comprising of Mr Ramesh Nair, Member (Judicial)set aside the impugned orders and the appeals are allowed with consequential relief.
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