2017 (6) TMI 420

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....ved by the department since 1991 under the above mentioned chapter sub-heading. Later on the department changed the classification of Kraft Lined Bags and HDPE Fabric laminated with Kraft Paper & LDPE vide order-in-original No. 1/95/A.C.Dn.X dt. 6.2.1995, classifying the above products under sub-heading 3923.90 with effective rate of 30%. The said classification was changed retrospectively from 1.3.1994. The appellants were served with show cause notices demanding the differential duty from 1.4.1994 to 6.2.1995. The total demand was Rs. 1,09,05,003/-, which was confirmed by the adjudicating authority. The appeal filed before the Commissioner (Appeals) by the appellant, was dismissed. The appellant filed an appeal with CESTAT along with stay....

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....ion was settled. Accordingly the adjudicating authority was supposed to grant the refund immediately after 3 months from the date of the Tribunal s order. Since, the adjudicating authority for no rhyme or reason sat on the Tribunal s order for 5 years. The appellant is clearly entitled for the interest. Both the lower authorities have contended that the interest is payable from 3 months of the date of filing of refund application and since the refund was granted within 3 months from the filing of refund application no interest is payable. In this regard he submits that in case of refund of pre-deposit no any formal written application is required to be filed. Therefore the contentions of both the lower authorities are incorrect and the appe....

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....means after deciding the matter by the Tribunal no duty was payable by the appellant. Therefore the entire amount of pre-deposit of Rs. 20 lakhs was refundable to the appellant within 3 months from the date of Tribunal s order. As regard the contention of both the lower authorities that the refund was sanctioned within 3 months from the date of application of refund, I am of the view that in case of refund of pre-deposit since no written application is required. The application filed by the appellant cannot be taken a tool to deprive of the appellant from the legitimate claim of interest. It is settled in various decisions of this Tribunal that in case of pre-deposit the refund is consequential to the order of the appellate authority, there....