The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), ruled that there is no requirement that claims for refund should be filed within 3 months of Tribunal’s order for the refund of pre-deposit.
The appellant in the present matter is Gujarat Borosil Limited. The issue involved in the present case is that whether, refund of pre-deposit made while filing the appeal before the tribunal is due from 3 months of passing of remand order by the Tribunal or after 3 months of passing order in de novo adjudication and consequential liability of department to pay interest thereon.
Anand Nainawati, Counsel who appeared on behalf of the appellant submitted that the amount of pre-deposit is made for admission of the appeal before the tribunal. Once the appeal is disposed of the said pre-deposit made stand refundable to the assessee within 3 months from the date of the Tribunal’s orders irrespective of whether the Tribunal’s order is final on merit or remand to the Adjudicating Authority. Therefore, the department’s contention in the present case that the refund is arising only after passing of de novo adjudication is irrelevant and illegal without any support of law.
Tara Parakash, Deputy Commissioner (AR) who appeared on behalf of the revenue submitted that after making pre-deposit for filing the appeal since the demand was not set aside and matter was remanded to the adjudicating Authority for passing de novo Order the refund of pre-deposit is payable only after setting aside the demand in the de novo adjudication process before that the refund of Pre-deposit is pre-matured, therefore, the lower authorities have rightly rejected the claim of interest made by the appellant.
A Two-Member Bench comprising Ramesh Nair, Judicial Member and CL Mahar, Technical Member observed that “We find that in various judgments it has been settled that as regard refund of pre-deposit, there is no requirement for filing a refund claim. The department must give the refund suo moto on the basis of Tribunal’s order therefore merely because the appellant have not filed the proper refund claim within 3 months of the Tribunal order, department cannot be absolved from the liability of interest on the refund of pre-deposit.”
“There is absolutely no doubt in our mind that appellant is entitled for the interest from the 3 months of the order of the tribunal till the refund was granted” the Bench concluded.
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