Tribunal Grants 12% Interest on 7.5% Pre-Deposit for 2018-2022 Under Amended Provisions of Central Excise Act.

The Tribunal determined that the appellant is entitled to interest on 7.5% of the pre-deposited amount from 2018 to 2022 at a rate of 12% per annum, pursuant to Section 35FF of the Central Excise Act, 1944. This decision was based on the amended provisions and relevant precedents, despite the Revenue's objections.

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Issues involved:
The judgment deals with the issue of interest on delayed refund u/s 35FF of the Central Excise Act, 1944.

Facts and Decision:
The appellant established a Gas Cracker Project in Assam which incurred losses due to interest payments for borrowings. DGCEI issued a show-cause notice for non-payment of service tax on PRS amounts. After adjudication, service tax was confirmed, penalties imposed, and the appellant deposited the amount under protest. The Tribunal set aside the demand. The appellant claimed a refund with interest, which was paid without interest. The appellant sought interest u/s 35FF, citing precedents. The Revenue argued against interest on the excess deposit. The Tribunal noted the pre-deposit requirement and the amended provisions mandating a 7.5% pre-deposit. It held the appellant entitled to interest on the 7.5% pre-deposit amount from 2018 to 2022 at 12% per annum, based on precedent.

Conclusion:
The Tribunal held that the appellant is entitled to interest on 7.5% of the deposited amount from 2018 to 2022 at 12% per annum u/s 35FF of the Central Excise Act, 1944.

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