Interest on refunded excise duty upheld at 18% per annum, but confined to run only from the Tribunal's order.

Interest on refunded excise duty was upheld as payable at 18% per annum, but the running of interest was confined to the date of the Tribunal's order because the entitlement to refund arose only from that order. The earlier period was rejected as the basis for interest. Accordingly, interest was payable on the refunded principal amount only from 20-9-1990 to 27-8-1991.

---

---

Issues: Whether interest on the refunded excise duty was payable at 18% per annum, and from what date such interest should run.

Analysis: The award of interest on the refunded amount was upheld as justified and the rate of 18% per annum was found reasonable. However, the commencement date for interest was confined to the date of the Tribunal's order, since the respondent's entitlement to refund arose only from that order. The period prior to the Tribunal's decision was not accepted as the proper basis for interest.

Conclusion: Interest at 18% per annum on the refunded principal amount was payable only from 20-9-1990 until 27-8-1991.

---