Pre-deposit refund and interest follow final disposal of appeal; limited stay on remand does not bar repayment.

A pre-deposit made under section 35F of the Central Excise Act remains refundable after the appeal is finally disposed of, and a stay confined to remand proceedings does not defeat that refund claim. The Tribunal treated the limited Supreme Court stay as insufficient to extinguish the right to refund and directed repayment of the pre-deposit. It also held that delayed refund can carry interest, applying the cited precedents and Tribunal practice. Interest was allowed at 12% from the expiry of three months after receipt of the final order dated 18-9-2001 until payment, with payment to be made within the stipulated time.

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Issues: (i) whether the appellants were entitled to refund of the pre-deposit made under section 35F of the Central Excise Act, 1944 after disposal of the appeals, and (ii) whether interest was payable on the refunded amount.

Issue (i): Whether the appellants were entitled to refund of the pre-deposit made under section 35F of the Central Excise Act, 1944 after disposal of the appeals.

Analysis: The pre-deposit had been made pursuant to the Tribunal's earlier stay order. The appeals had been finally disposed of, and the Supreme Court's interim order stayed only the remand proceedings. That limited stay did not extinguish the appellants' right to seek refund of the pre-deposit.

Conclusion: The refund of the pre-deposit was directed in favour of the appellants.

Issue (ii): Whether interest was payable on the refunded amount.

Analysis: In view of the cited precedents and the Tribunal's practice in similar matters, interest was held to be payable on delayed refund of the pre-deposit.

Conclusion: Interest at 12% was allowed from the expiry of three months after receipt of the final order dated 18-9-2001 until payment.

Final Conclusion: The appellants succeeded in obtaining refund of the pre-deposit with interest, and the respondents were required to make payment within the stipulated time.

Ratio Decidendi: Where a pre-deposit has been made under section 35F and the appeal stands finally disposed of, a stay limited to remand proceedings does not bar refund of the pre-deposit, and delayed refund may carry interest.

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