Interest on refunded pre-deposit upheld where computation followed Board guidelines and post-order delay periods

Interest on refund of a pre-deposit was assessed by reference to the Board's circular dated 8-12-2004, with the Commissioner (Appeals) granting interest only for periods after expiry of three months from the relevant final orders and up to the stay orders or the date of payment. The calculation took account of the long pendency, including remand and stay orders, and was found consistent with the applicable guidelines for interest on pre-deposit. The interest computation was therefore upheld and the Revenue's challenge failed.

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Issues: Whether interest on the refunded pre-deposit was correctly calculated for the periods determined by the Commissioner (Appeals).

Analysis: The pre-deposit had been made long before the ultimate setting aside of the demand, and the matter had gone through multiple remand and stay orders. The Commissioner (Appeals) allowed interest only for the periods after the expiry of three months from the relevant final orders and up to the respective stay orders or the date of payment. The Board's circular dated 8-12-2004 laid down the applicable guidelines for payment of interest on pre-deposit, and the impugned order was found to be in conformity with those guidelines.

Conclusion: The calculation of interest was upheld and the Revenue's challenge failed.

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