Consequential refund and interest for delayed processing after finalisation of assessment disputes and prior tribunal directions

An assessee's claim for refund of an extra duty deposit and pre-deposit made under an earlier CESTAT order was held to be payable as consequential relief. The refund was required to be processed within a reasonable time after finalisation of the matter, and departmental authorities were expected to comply promptly with refund directions in line with Board circulars. Continued non-processing of the claim and insistence on unnecessary fresh filings did not justify withholding the refund after the assessment disputes were concluded. Interest was also payable for the delay in grant of refund in accordance with law.

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Issues: Whether the assessee was entitled to refund of the extra duty deposit and pre-deposit made pursuant to the earlier Tribunal order, and whether such refund was also liable to be granted with interest for delay.

Analysis: The earlier final order had already held the assessee entitled to consequential relief. The refund should have been processed within a reasonable time after the final order, and the departmental authorities were required to follow the Board's circulars prescribing prompt compliance with refund directions and recognising interest liability where delay occurs. The continued non-processing of the claim and insistence on avoidable fresh filings did not justify withholding the refund after finalisation of the assessments and dismissal of the department's further challenge.

Conclusion: The assessee was entitled to refund of both the extra duty deposit and the pre-deposit, along with interest in accordance with law.

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