Pre-deposit refund with interest under the Central Excise Act is payable when the assessee succeeds.

A pre-deposit made as a condition for hearing an appeal under the Central Excise Act, 1944 is refundable with interest when the assessee succeeds. The position had already been settled by an earlier Supreme Court decision, and the subsequent CBEC circular also accepted payment of interest on delayed refund of such pre-deposit. The operative effect is that the assessee is entitled to refund together with interest, not merely return of the deposited amount.

---

---

Issues: Whether the amount deposited as a pre-condition for hearing of an appeal under the Central Excise Act, 1944 was refundable with interest when the assessee ultimately succeeded.

Analysis: The issue had already been concluded by an earlier decision holding that a pre-deposit made for the purpose of appeal under the Central Excise Act, 1944 is refundable with interest on the assessee succeeding. The subsequent circular of the Central Board of Excise and Customs also accepted payment of interest on delayed refund of pre-deposit.

Conclusion: The refundable nature of the pre-deposit with interest was affirmed in favour of the assessee.

---