2004 (4) TMI 511 - AT - Central Excise

Tribunal Limits Interest Period on Pre-Deposit, Emphasizes Timely Refund Application

The Tribunal limited the interest period on the pre-deposit made by M/s. ILPEA Paramount Ltd. to a specific period based on the date of their refund ... Interest on refund of pre-deposit Issues:Interest on pre-deposit made by M/s. ILPEA Paramount Ltd. as per order passed by the Appellate Tribunal.Analysis:The appeal filed by M/s. ILPEA Paramount Ltd. raised the issue of interest on a pre-deposit made by them following an order by the Appellate Tribunal. The appellant contended that they were entitled to interest on the amount deposited from a specific period. The appellant cited a decision in the case of CCE, Hyderabad v. ITC Ltd. and referred to Board's Circulars to support their claim for interest. On the other hand, the Departmental Representative countered the argument by reiterating the findings in the impugned order.The Tribunal considered both sides' submissions. It was noted that the application for refund of the deposited amount was made by the appellants on a specific date. The Central Board of Excise & Customs clarified that a formal application under Section 11B(1) of the Central Excise Act was not required for refund, but specific documents were necessary for processing the refund. These documents were not provided immediately after the Tribunal allowed the appeal. The Tribunal highlighted that interest is governed by Section 11BB of the Central Excise Act, which mandates interest payment if the refund is not made within three months of the receipt of the application. Since the refund application was submitted on a particular date, the appellants were deemed eligible for interest for a specific period only. Therefore, the Tribunal disposed of the appeal accordingly, limiting the interest period based on the application date for refund.In conclusion, the judgment clarified the criteria for interest on pre-deposits and emphasized the importance of timely submission of necessary documents for refund processing. The decision was based on the provisions of the Central Excise Act regarding interest payments and the specific timeline for refund applications.