Interest on Pre-Deposits

[Adarsh Gupta]

Sir's,

I understand that interest @ 6% was introduced vide Notification no 24/2014 dated 12 Aug 2014 for refund of Pre-deposits u/s 35FF of CEA, 1944. Request your support to let me know the rate of interest on deposits made prior to 12th Aug 2014 before going to an appeal?

Regards,

ADARSH GUPTA

[KASTURI SETHI]

Section 35 FF came into force on 6.8.14 vide Clause 106 of 2014 Finance (No.2) Act and thereafter rate of interest was fixed @6% vide Notification No.24/2014-CE(NT) dated 12.8.14( as mentioned by you.)'

Prior to the enactment of Section 35 FF , it was covered by Section 35 F read with Section 11 BB of Central Excise Act.

Interest on delayed refunds reduced to six per cent per annum - Notification No. 17/2002-C.E. (N.T.) superseded

In exercise of the powers conferred by section 11BB of the Central Excise Act, 1944 (1 of 1944) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 17/2002-Central Excise (N.T.), dated the 13th May, 2002 [GSR 353(E), dated the 13th May, 2002], except as respect things done or omitted to be done before such supersession, the Central Government hereby fixes the rate of interest at six percent per annum for the purpose of the said section.

[Notification No. 67/2003-C.E. (N.T.), dated 12-9-2003]

Prior to this it was 8% vide Notification No.17/2002-CE(NT) dated 13.5.2002

AI Summary

Interest on pre-deposits: rate fixed by 2014 notification for refunds under section 35FF; prior notifications governed earlier rates. Interest on pre-deposits for refund proceedings was set by the enactment of section 35FF and an accompanying August 2014 notification fixing the rate for refunds of pre-deposits; deposits made before that commencement remained governed by section 35F read with section 11BB and earlier notifications, including a 2003 notification that fixed the statutory interest rate and superseded an earlier 2002 notification.