Interest on refunded pre-deposit: Tribunal applies refund-interest provision and directs payment from expiry of three months after application.

Interest on a refunded pre-deposit was treated as payable where the refund was made without interest and the claim had not been withdrawn. The Tribunal rejected the objection that a later withdrawal request barred the interest claim, and applied the statutory refund-interest framework under Section 11BB to fix the period and rate. Interest was directed from the expiry of three months after the refund application until actual payment, at the prescribed rate, with payment ordered in favour of the applicant.

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Issues: Whether interest was payable on refund of the pre-deposited amount, and if so, the period and rate of such interest.

Analysis: The amount of Rs. 15 lakhs deposited in the course of the appeal was refunded to the applicant, but without interest. The objection that a withdrawal request in a later application barred the claim for interest was not accepted, as the claim for interest had not been withdrawn. The Tribunal followed the settled position that interest can be awarded on refund of pre-deposit, and adopted the statutory framework of Section 11BB for determining the period and rate. Interest was directed from the expiry of three months after the refund application until the date of actual payment.

Conclusion: Interest on the refunded pre-deposit was held payable in favour of the applicant at the rate prescribed under Section 11BB for the specified period.

Final Conclusion: The revenue was directed to pay interest on the refunded pre-deposit within one month, and the miscellaneous applications were disposed of accordingly.

Ratio Decidendi: Interest is payable on refund of a pre-deposited amount, and the governing period and rate may be determined with reference to the statutory refund-interest provision applicable to excise refunds.

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