Interest on refund of pre-deposit runs from the date of deposit, not merely after the refund application period.

Interest on refund of a pre-deposit made for appellate proceedings was payable from the date of deposit, because such payment is treated as a statutory pre-condition for pursuing the remedy and not as an ordinary refund claim. The Tribunal relied on existing precedent, the governing statutory scheme, and the Board circular to hold that interest accrues from the date the amount was deposited, rather than only after three months from the refund application.

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Issues: Whether interest on refund of the pre-deposit was payable from the date of deposit or only after three months from the date of the refund application.

Analysis: The dispute concerned refund of an amount deposited as pre-deposit in connection with the appellate proceedings. The Tribunal noted that the issue stood covered by judicial precedent holding that an amount deposited as a pre-condition for pursuing the statutory remedy is to be treated as pre-deposit, and that interest on such refund becomes payable from the date of deposit. The Tribunal also treated the statutory scheme and the Board circular governing return of pre-deposits as supporting the grant of interest on the refunded amount.

Conclusion: Interest was payable on the refunded pre-deposit from the date of deposit, and not merely after three months from the refund application.

Ratio Decidendi: An amount deposited as pre-deposit in appellate proceedings carries interest on refund from the date of deposit where the assessee succeeds and the deposit is returned as pre-deposit under the governing statutory and circular framework.

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