Interest on refund of redemption fine after successful appeal was held payable under the refund procedure and circular guidance.

Interest was payable on a redemption fine deposited under protest and refunded after the assessee succeeded in appeal. The Tribunal applied the governing refund procedure and the Board's circular dated 08-12-2004, which contemplated return of pre-deposits within the prescribed period and supported interest where refund was delayed. The Revenue's objection based on an incomplete reference to a stay order was rejected. The refund claim with interest was accordingly allowed.

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Issues: Whether interest was payable on the redemption fine refunded to the appellant after the appellate decision in its favour.

Analysis: The appellant had deposited the redemption fine under protest and, after the Tribunal decided the matter in its favour, the amount was refunded. The Tribunal relied on the cited authorities and the Board's Circular dated 08-12-2004, which contemplated return of pre-deposits within the prescribed period and supported payment of interest where refund was delayed. The Revenue's objection based on an incomplete reference to a stay order was not accepted.

Conclusion: Interest on the refunded amount was held to be payable and the claim was allowed.

Ratio Decidendi: Where an amount deposited under protest is refunded after the assessee succeeds in appeal, interest is payable in accordance with the governing refund procedure and the applicable Board circular.

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