Pre-deposit refund interest claim failed where the interest period was confined to post-disposal relief and the cited precedent did not apply.

A pre-deposit made during appellate proceedings was treated as refundable with interest where the assessee ultimately succeeded on the dispute, but the interest entitlement was confined to the period after final disposal on merits. A precedent concerning refund of duty-paid goods under a different rule was held inapplicable, and the earlier contrary view was treated as no longer good law. On the facts as framed, the claim for interest was rejected and the challenge to the order denying interest failed.

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Issues: Whether interest was payable on the amount deposited by the assessee during the pendency of the appeal and later refunded after the dispute was finally decided in its favour.

Analysis: The amount deposited during the appellate proceedings was treated as a pre-deposit. The governing principle applied was that where an assessee succeeds ultimately, the pre-deposit is refundable with interest, but the assessee's reliance on a case concerning refund of duty-paid goods under a different rule was held to be inapplicable on the facts. The earlier view contrary to this principle was treated as no longer good law, and the interest, if any, was linked to the period after final disposal of the dispute on merits.

Conclusion: Interest was not allowed on the appellant's claim as framed, and the challenge to the order denying such interest failed.

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