TaxTMI 
TaxTMI 
2024 (5) TMI 743
X X X X Extracts X X X X
X X X X Extracts X X X X
....the following substantial question of law:- "Whether the Learned Tribunal is justified in law in not allowing the interest at the rate of 12 per cent per annum on the refund amount of pre-deposit?" Facts 3. Briefly stated, facts of the present case are that on 20th August 1998, a sum of Rs. 9,93,200/- was seized by the Director of Revenue Intelligence on the ground that it was liable to confiscation being sale proceeds of the goods which was liable for confiscation. By order dated 30.11.2018, the Adjudicating Authority held that the seized cash is not liable for confiscation but it imposed penalty of Rs. 65 lakh upon the appellant and the aforesaid sum of Rs. 9,93,200/- was sought to be appropriated against the penalty. The a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....impugned order dated 24.01.2012. Aggrieved with the order of the CESTAT, the appellant herein has filed the present appeal on 14.06.2012, which has been admitted on the afore-quoted substantial question of law. Submissions 4. Learned counsel for the appellant submits that there was no provision under the Act providing for rate of interest on refund of pre-deposit. Earlier, the respondents were not granting refund, but it was pursuant to the judgment of Hon'ble Supreme Court in Commissioner of Central Excise, Hyderabad v. ITC Limited 2005 (179) ELT 15 (SC) that the Central Board of Excise and Customs issued a circular bearing No. 802/35/2004-CX dated 08.12.2004 allowing payment of interest on delayed refund of the amount of princip....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... notification providing for rate of interest on the delayed refund of pre-deposit and it was only pursuant to the order of Hon'ble Supreme Court and consequential circular issued by the Board that interest on refund of pre-deposit was being made. Discussion and Finding 6. We have carefully considered the submissions of learned counsel for the parties and perused the paper book. 7. The dates, events and facts as afore-noted have not been disputed by learned counsel for the respondents before us. Thus, it remains undisputed that the seized cash of Rs. 9,93,200/- was made pre-deposit by order of the CESTAT dated 22.04.2000 under Section 129E of the Customs Act, 1962. Admittedly, neither there was any provision nor any notification....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on'ble Supreme Court decided the matter finally on February 24, 2005 and thus, in view of the decision of the Supreme Court in the case of Commissioner of Central Excise v. ITC Limited, reported in 2005 (179) ELT. 15, interest was payable for the period commencing from three months after the final disposal of the matter till the date of refund and thus, in this case interest was payable from May 25, 2005. It appears that the Central Board of Excise and Customs, pursuant to the aforesaid decision of the Supreme Court, has already issued a Circular Bearing No. 802/35/2004-CX., dated December 16. Therefore, while setting aside the order of the Tribunal below the Court directed the respondent to pay interest to the appellant in ter....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ful, refundable to the assessee with interest as there was no provision in the Central Excise Act for payment of interest on such refund. It is in the course of hearing before the Supreme Court that the Learned Solicitor General after taking instructions made a statement that the Central Board of Excise and Customs proposes to issue a circular in connection with the payment of interest on all such pre-deposits. At the time a draft copy of the proposed circular was handed over to the Supreme Court there was no rate of interest specified in the proposal and, therefore, the Supreme Court awarded interest @ 12% per annum. Therefore, when this Court directed the respondent to pay interest to the appellant in terms of the Circular Bearing No. 802....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es that the Government of India, Ministry of Finance (Department of Revenue), New Delhi has issued a notification No. 70/2014/Customs (N.T.) dated 12.08.2014 in exercise of powers conferred under Section 129EE of the Customs Act, 1962 fixing the rate of interest @ 6% per annum for the purposes of the said Section and, therefore, the same rate of interest is applicable. We do not find any substance in this submission of learned senior standing counsel for the respondents. Reason is that the said notification is dated 12.08.2014. The rate of interest on delayed refund of pre-deposit shall be governed by the law laid down by Hon'ble Supreme Court in ITC Limited (supra) as well as a coordinate Bench of this Court in Madura Coats Private Lim....