Interest on pre-deposit denied where refund followed promptly after the assessee succeeded in the underlying dispute.

Interest on a pre-deposit was denied where the amount had been paid pursuant to the Tribunal's direction, the substantive dispute was later decided in the assessee's favour, and the Revenue sanctioned refund within about three months of the refund application. On those facts, the claim for interest for the intervening period was held unsustainable in law, and the appellate order refusing interest was upheld. The assessee was therefore not entitled to interest on the refunded pre-deposit for the period claimed.

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Issues: Whether the assessee was entitled to interest on the amount deposited as pre-deposit from the date of deposit till the date of refund.

Analysis: The amount was deposited pursuant to the Tribunal's direction and the dispute was subsequently decided in favour of the assessee. The refund was sanctioned by the Revenue within about three months of the refund application. On these facts, the claim for interest for the intervening period was held to be unsustainable in law, and the appellate order denying interest was found to be correct.

Conclusion: The assessee was not entitled to interest on the pre-deposit amount for the period claimed, and the appeal was rejected.

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