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of <h1>Tribunal Grants 12% Interest on 7.5% Pre-Deposit for 2018-2022 Under Amended Provisions of Central Excise Act.</h1> 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, ... Interest on delayed refund - deposit of whole amount of service tax demanded, under protest - HELD THAT:- Admittedly, in this case, the appellant has made the pre-deposit of whole of the demand of service tax although under protest, but the same was not required to be paid by the appellant to file appeal before this Tribunal - In that circumstances, the appellant is entitled to claim the interest on 7.5% of the demand of service tax deposited (Rs.7,90,08,905/-) on 28.12.2018 till its realization i.e. 01.09.2022. In terms of the decision of this Tribunal in the case of M/S. PARLE AGRO PVT. LTD. VERSUS COMMISSIONER, CENTRAL GOODS & SERVICE TAX, NOIDA (VICE-VERSA) [2021 (5) TMI 870 - CESTAT ALLAHABAD], the appellant is entitled for interest at the rate of 12% per annum - the appellant is entitled to interest on 7.5% of Rs.7,90,08,905/- from 28.12.2018 till 01.09.2022 at the rate of 12% per annum. Appeal disposed off. 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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