The CESTAT set aside the impugned order and remanded the matter...

The CESTAT set aside the impugned order and remanded the matter to the Assistant Commissioner, ruling that amounts deposited by the appellant during investigation, which were appropriated toward service tax demand, should be treated as service tax payment rather than pre-deposit. Following the Tribunal's earlier decision setting aside the demand, these amounts became refundable under Section 11B of the Central Excise Act (as applicable to service tax via Section 83 of the Finance Act, 1994). The Tribunal directed that interest should be calculated under Section 11BB rather than Section 35FF, with the relevant date for interest calculation being the date of the Tribunal's order setting aside the demand. No new refund application was required as the appellant's letter already constituted a valid application.