Interest entitlement affirmed from deposit date in Central Excise Duty refund case.

The Tribunal affirmed the entitlement to interest from the deposit date in a case involving a refund application for Central Excise Duty. The Commissioner (Appeals) initially allowed the refund with interest, which the Assistant Commissioner disbursed without interest citing a circular. Upon appeal, the Commissioner (Appeals) reinstated the interest, emphasizing the Department's failure to establish duty liability or issue a show cause notice. The Tribunal upheld the interest payment from the deposit date, concluding the present appeal against the Commissioner (Appeals) order as inconsequential.

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Issues:
1. Whether the Assistant Commissioner overlooked the direction given by the Commissioner (Appeals)Rs.

Analysis:
The appeal revolved around a refund application for Central Excise Duty deposited under protest by the Appellant. The Appellant claimed that no show cause notice was issued by the Department even after four years from the deposit date, indicating no case against them. The Department contended that the duty was not deposited under protest as per prescribed procedures and that Section 11B was applicable. The Commissioner (Appeals) allowed the appeal, considering the deposit as under protest and directing the refund with interest. The Assistant Commissioner disbursed the principal amount but denied interest citing a circular. The Respondent appealed again, and the Commissioner (Appeals) overturned the denial of interest, emphasizing the Department's failure to establish duty liability or issue a show cause notice. The Tribunal later affirmed the entitlement to interest from the deposit date, rendering the present appeal against the Commissioner (Appeals) order inconsequential.

2. Whether interest should be allowed from the date of depositRs.

Analysis:
The Commissioner (Appeals) directed interest to be paid from the deposit date till the actual refund at a rate of 6% per annum, citing legal precedents. The Assistant Commissioner initially denied interest based on a circular's interpretation, but the subsequent Commissioner (Appeals) order reinstated the interest, highlighting the Department's failure to prove duty liability or issue a show cause notice. The Tribunal, in a separate appeal by the Revenue, affirmed the allowance of interest from the deposit date, emphasizing the entitlement of the assessee to compensation for the amount held by the Department without justification for over four years. The final dismissal of the present appeal as infructuous confirmed the entitlement to interest from the deposit date, as established in the earlier orders.

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