2018 (11) TMI 1455

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....e of the order of the Tribunal. The brief facts of case are that the appellant during the investigation of demand case deposited an amount of Rs. 60 Lacs under protest, thereafter, a SCN was issued wherein the demand of Central Excise duty and Customs duty was raised. The said show cause notice was adjudicated vide Order in Appeal No. 4/Commr/Ahd.lll/99 dated 31.03.1999 whereby demand of only Rs. 19,01,611/- confirmed, penalty of Rs. 20,00,000/- and a personal penalty of Rs. 50,000/- were imposed. The rest of the demand was dropped. The said amount along with interest was ordered to be appropriated against deposit of Rs. 60 Lacs already made by the appellant. The appellant filed refund claim of Rs. 60 Lacs on 14.07.1999 which the Jurisdicti....

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....TAT order that is 12.06.2002. The appellant being partly aggrieved with the order in Appeal filed the present appeal, seeking interest on the sanctioned refund from the date of deposit of an amount of Rs. 60 Lacs instead of date of order of the CESTAT. 2. Sh. Deven Parikh Ld. Senior Counsel appearing on behalf of the appellant submits that the appellant made deposit of an amount of Rs. 60 Lacs during investigation which is not duty but only deposit. The appellant was not legally required to pay any duty during investigation, therefore, the same amount is refundable right from the date of deposit. Hence interest is also payable on refund of such deposit from date of deposit itself. In support of his submission, he placed reliance on the fol....

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....CN in the adjudication, the demand of Rs. 19,01,611/-, penalty of Rs. 20,00,000/- and personal penalty of Rs. 50,000/- were confirmed and the same was appropriated against the deposit of Rs. 60 Lacs already made by the appellant. Though the appellant filed a refund claim of Rs. 60 Lacs on 14.07.1999 but duty after the appropriation against the said balance amount, was refundable and subsequently when the Tribunal allowed the appeal of the appellant, the amount became refundable only. Therefore, in this fact, we find that amount left unappropriated against deposit of Rs. 60 Lacs was refundable within 3 months from the date of filing application i.e. 14.07.1999. Accordingly, the interest is also payable on such amount from 3 months of the dat....