Pre-deposit refunds with interest follow binding precedent when appellate success triggers return of the amount under Section 35F.

Interest may be payable on a pre-deposit made under Section 35F of the Central Excise Act and later refunded after a successful appeal where binding precedent directs such payment. The Tribunal followed Supreme Court and High Court authorities that had ordered refund of pre-deposits with interest, and distinguished Revenue's relied-upon decisions because they did not decide the interest issue on pre-deposits. It held that Article 141 binds the Tribunal to follow the Supreme Court's ruling, and the absence of an express statutory provision cited by the Revenue did not justify ing interest.

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Issues: Whether interest is payable on the amount deposited under Section 35F of the Central Excise Act, 1944 and refunded to the assessee after success in appeal.

Analysis: The Tribunal held that the question of interest on pre-deposit was covered by binding judicial authority. It relied on the Supreme Court and High Court decisions which had directed refund of pre-deposits with interest, and distinguished the cases relied upon by the Revenue on the ground that those decisions did not decide the interest question on pre-deposits. It further held that the Supreme Court's decision was binding under Article 141 of the Constitution of India and, therefore, the Tribunal could not decline to award interest merely on the ground that no express statutory provision was cited by the Revenue.

Conclusion: Interest was payable on the refunded pre-deposit, and the claim of the assessee succeeded.

Ratio Decidendi: Pre-deposits made under Section 35F and later refunded on success in appeal can carry interest where binding precedent has directed such payment, and the Tribunal is bound to follow that precedent under Article 141 of the Constitution of India.

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