Refund interest on duty deposits pending appeal was payable when the refund was delayed beyond the statutory period.

Amounts deposited as duty pending appeal were treated as duty, so once refund became due under the earlier appellate orders, delay beyond the prescribed period attracted interest under Section 11BB. The argument based on a stay order under Section 35F was held irrelevant to entitlement to refund interest. Interest was therefore payable on the delayed refund of the duty amounts deposited by the appellants.

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Issues: Whether interest under Section 11BB was payable on refund of amounts deposited as duty pending appeal.

Analysis: The amounts deposited by the appellants were treated as duty. The entitlement to refund followed the Tribunal's earlier orders in the appeals, and the refund was delayed beyond the period contemplated for payment of interest. The reliance placed on a stay order concerning Section 35F was held to be irrelevant to the question of interest on refund.

Conclusion: Interest under Section 11BB was payable on the delayed refund of the duty amounts deposited by the appellants.

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