CESTAT held that appellants who deposited amounts during...

CESTAT held that appellants who deposited amounts during investigation prior to show cause notice issuance were entitled to interest on refunded revenue deposits. The amounts constituted revenue deposits rather than duty/tax payments since deposited before show cause notices, which were subsequently quashed under Section 73 of Finance Act, 1994. Retention of such deposits without interest violated Article 265 of Constitution. Commissioner (Appeals) correctly sanctioned refund, with Department not appealing the refund decision. Under Section 11BB and Notification No. 67/2003-CE, appellants entitled to 6% per annum interest on refunded amounts calculated from deposit date until realization. Appeal allowed.