TaxTMI 
TaxTMI 
2017 (5) TMI 615
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....ow Cause Notice to the assessee appellant for determination of the assessable value. The said show cause notice was confirmed vide Order-in-Original No. 7/1992 dated 22.4.1992 passed by Collector, Raipur confirming the demand of Rs. 11,85,009/-. (ii) The appellant assessee filed appeal against the Order-in-Original dated. 22.4.1992 before the Tribunal. The Tribunal vide its Stay order dated 27.8.1992 directed the appellant to deposit Rs. 7 lakhs as pre-deposit. This direction of pre-deposit of Rs. 7 lakhs was complied with by the assessee appellant. (iii) The Tribunal vide Final Order No. 489-493/1998-A dated 27.3.1998 remanded the matter back to the adjudicating authority for adjudication of the case after receiving reply to the show....
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....-in-Original No. 3/2006 dated 15.1.2007. However, no interest was allowed on delayed sanction of refund. (viii) The appellant's prayer is that they be allowed interest on the pre-deposit of Rs. 7 lakhs from the day of expiry of three months period from the day, when Tribunal had remanded the matter to the adjudicating authority for fresh adjudication. The Tribunal passed said order on 27.3.1998. The appellant is requesting interest from the day of expiry of three months of Tribunal's order; three months period expired on 26.6.1990, thus appellant pleads to be paid interest on delayed payment. 3. With above background, both sides represented by ld. Counsels, Shri Rahul Tangri and Shri G.R. Singh have been heard. 4. The ld. Counsel f....
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....sits as other than duty, such deposits should be returned in the event the appellant succeeds in appeal or the matter is remanded for fresh adjudication." 2..................... 3. In order to attain uniformity and to regulate such refunds it is clarified that refund applications under Section 11B(1) of the Central Excise Act, 1944 or under Section 27(1) of the Customs Act, 1962 need not be insisted upon. A simple letter from the person who has made order-in-appeal or CEGAT order consequent to which the deposit made becomes returnable and an attested Xerox copy of the Challan in Form TR6 evidencing the payment of the amount of such deposit, addressed to the concerned Assistant/Deputy Commissioner of Central Excise or Custo....
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.... or disbursal consistently with the final order maintaining or setting aside the order of adjudication. 8. In this case, the matter has been remanded inasmuch as the Tribunal was of the opinion that the adjudication was not satisfactory and it required a fresh application of mind. In our opinion, once the order of adjudication was set aside, the Tribunal could not have ordered the amount of pre-deposit to be retained awaiting the order of adjudication. There is no provision in the law requiring certain amount to be retained as a pre-deposit pending finalisation of the adjudication proceedings. As the amount is being withheld without any authority of law, it is liable to be refunded. 6.4 The Hon'ble Delhi High Court in the case o....
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....ords, the parties were put back to the situation of a show cause notice against the Petitioner being adjudicated by the authority. Mr. Jetley fairly conceded that there is no provision in the Act which requires deposit of any amount at the stage of adjudication and that the only provision which requires deposit is Section 35F of the Act after the adjudication has quantified the liability towards duty. If these are the circumstances, then we see no reason how the Respondents were entitled to hold on to the money merely because the adjudication was proceeding on the original show cause notice, that too on demands which were hopelessly time barred, as subsequently pointed out by the Supreme Court." 6.5 In the light of contents of CBEC circu....