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of <h1>Tribunal Awards 12% Interest to Appellants on Pre-Deposited Amount, Aligning with High Court's Decision.</h1> <h3>JINDAL ELECTRIC & MACHINERY CORPN. Versus COMMR. OF C. EX., LUDHIANA</h3> JINDAL ELECTRIC & MACHINERY CORPN. Versus COMMR. OF C. EX., LUDHIANA - 2004 (166) E.L.T. 276 (Tri. - Del.) Issues: Denial of interest on pre-deposited amount under Section 35F, conflict between High Court and Tribunal decisions on payment of interest.Summary:The appellants were denied interest on an amount pre-deposited under Section 35F of the Central Excise Act, which was eventually refunded after their appeal was decided in their favor. The claim for interest from the date of deposit was rejected by the original authority and upheld by the Commissioner (Appeals), leading to the present appeal by the assessee seeking interest on the amount from the date of deposit.The ld. Consultant for the appellants argued that interest should be paid from the date of the Tribunal's Final Order in the appeal, citing conflicting views between High Court and Tribunal decisions. The High Court's decision in Suvidhe Ltd. case held that Section 11B was not applicable to a claim for refund of a pre-deposit under Section 35F, and thus, interest should be paid from the date of the Tribunal's Final Order.On the other hand, the ld. DR referred to the decision in Sharda Synthetics case, which held that interest should be paid from the date of expiry of 3 months after the Tribunal's order. However, the Tribunal's Larger Bench decision in Mira Silk Mills favored the High Court's ruling, stating that interest should be paid from the date of the Tribunal's Final Order.Considering the conflicting views, the Tribunal held that interest is payable to the appellants from the date of the Tribunal's Final Order, in line with the High Court's decision. The appellants were directed to receive interest at a rate of 12% as per the Supreme Court's decision in Kuil Fireworks Industries case. The impugned order denying interest was set aside, and the appellants were granted payment of interest within 3 months.
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