LLP granted interest on pre-deposit for appeal under Central Excise Act.

The Court allowed the petition filed by a Limited Liability Partnership (LLP) seeking interest on a pre-deposit made for an appeal under Section 35FF of the Central Excise Act, 1944. The Court held that the petitioner is entitled to interest on the deposited amount beyond three months from the date of the Customs Excise and Service tax Appellate Tribunal's (CESTAT) order. The Court directed the Adjudicating Authority to consider and disburse the interest amount claimed by the petitioner, amounting to Rs. 24,50,959.

---

---

Issues involved:
The judgment addresses the petitioner's request for interest on a pre-deposit made for filing an appeal under Section 35FF of the Central Excise Act, 1944.

Controversy and Details:
The petitioner, a Limited Liability Partnership (LLP) engaged in management consultancy services, filed an appeal before the Customs Excise and Service tax Appellate Tribunal (CESTAT) against a service tax order. To maintain the appeal, the petitioner deposited Rs. 1,00,00,000 with the respondents. The appeal was successful, and the deposited amount was refundable. The respondents had also appealed against the CESTAT decision, which was dismissed by the Court. The petitioner's appeal against the CESTAT decision was rejected, and the respondent's appeal is pending before the Supreme Court.

Entitlement to Interest:
The judgment notes that the petitioner is entitled to interest on the deposited amount beyond three months from the date of the CESTAT's order. Although the principal amount has been refunded to the petitioner, no interest has been paid. The respondents argued that the petitioner should appeal against the Adjudicating Authority's decision limiting the refund to the principal amount, but the Court found it unnecessary to do so. The petitioner claimed Rs. 24,50,959 as interest due on the pre-deposit.

Decision and Order:
The Court set aside the communication rejecting the petitioner's interest request and directed the Adjudicating Authority to consider the interest claim on the pre-deposit amount and disburse the calculated amount. The petition was allowed in favor of the petitioner.

---