Tribunal directs interest payment on pre-deposit amounts within 45 days, emphasizes adherence to Section 35FF provisions.

The Tribunal in Appeal No. E/70051/2017-EX[SM] and Appeal No. E/70052/2017-EX[SM] granted relief to the appellants by directing the adjudicating authority to calculate and disburse interest on the pre-deposit amounts within 45 days. The adjustments made without proper notice were deemed improper, emphasizing adherence to Section 35FF provisions for interest calculation and payment. The Tribunal's directions aimed to rectify errors and ensure timely interest payments, providing a fair resolution to the refund issues raised in the appeals.

---

---

Issues involved:
1. Refund of pre-deposit under Section 35F and refund with interest under Section 35FF of the Act.

Analysis:
1. Appeal No. E/70051/2017-EX[SM]:
- The appellant filed an appeal against the Order-in-Original confirming the demand and penalty imposed. The case went through multiple stages of appeal and remand.
- The appellant requested a refund of the pre-deposit amount of Rs. 50,000. The refund was initially sanctioned but later adjusted against another demand without a hearing.
- The Tribunal found errors in not calculating the interest payable to the appellant under Section 35FF and deemed the adjustment of the refund without a show cause notice as improper.
- The Tribunal directed the adjudicating authority to calculate and disburse the interest on the pre-deposit amount of Rs. 50,000 for the relevant periods and the adjusted amount within 45 days.

2. Appeal No. E/70052/2017-EX[SM]:
- Similar to the first appeal, this case involved the appellant's appeal against the Order-in-Original confirming the demand, penalty, and Cenvat credit disallowance.
- The appellant sought a refund of Rs. 62,369, which was adjusted without a hearing against another demand.
- The Tribunal noted the failure to calculate interest under Section 35FF and the improper adjustment of the refund without a show cause notice.
- The Tribunal directed the adjudicating authority to calculate and disburse the interest on the pre-deposit amount and the adjusted amount within 45 days from the date of the order.

In both cases, the Tribunal emphasized the importance of calculating and disbursing interest as per the provisions of Section 35FF. The appellants were granted relief as the adjustments made without proper notice were deemed unjust. The directions issued by the Tribunal aimed at rectifying the errors and ensuring the timely payment of interest amounts to the appellants, providing a fair resolution to the refund issues raised in the appeals.

---