Appellant wins interest at 12% p.a. under Section 35FF for refund

The Tribunal ruled in favor of the appellant, allowing interest under Section 35FF at 12% p.a. from the date of deposit till the refund date. The decision was based on precedents and the provisions of the Central Excise Act.

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Issues involved:
Allowance of proper interest under Section 35FF of Central Excise Act.

Analysis:

Issue 1: Proper interest under Section 35FF
The case involved the demand of Central Excise duty, subsequent challenges, and refund claims with interest. The Tribunal allowed the appeal and set aside the impugned order-in-original, leading to appeals by the revenue before the High Court and Supreme Court. The appellant claimed refund of the pre-deposit amount with interest. The Adjudicating Authority granted the refund but denied the interest claim. The Commissioner (Appeals) allowed interest under Section 35FF, stating it was payable as per the provision existing before 06/08/2014. The appellant argued for interest from the date of deposit till refund at 12% p.a., citing relevant case laws. The Tribunal found in favor of the appellant, citing precedents where interest was granted at 12% p.a. from the date of deposit till refund. The Tribunal allowed the appeals and directed the Adjudicating Authority to grant the balance interest within 45 days.

Conclusion:
The Tribunal ruled in favor of the appellant, allowing interest under Section 35FF at 12% p.a. from the date of deposit till the refund date. The decision was based on precedents and the provisions of the Central Excise Act.

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