2024 (6) TMI 377

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....vat credit on the basis of fake invoices issued by traders. During investigation, due to pressure of the Department, they reversed the Cenvat credit amounting to Rs.39,22,715/- along with interest of Rs.18,07,904/- in March, 2009. 3. A Show Cause Notice SCN dated 13.04.2009 was issued for wrong availment of Cenvat Credit on Inputs. Adjudicating Authority confirmed the demand along with interest and imposed penalty vide Order-in-Original dated 16.01.2010 and appropriated the amount deposited by the Appellant. In appeal, the learned Commissioner (Appeals) vide Order-in-Appeal dated 27.08.2010 rejected the appeal. 4. In appeal before this Tribunal, the Tribunal allowed the appeal vide its Final Order No. A/70454/2017-SM (DR) dated 16.02.2017....

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....(Appeals) allowed interest on Rs.39,22,715/-. He, however denied the interest on Rs.18,07,914/- with the observation that there is no provision for payment of compensatory interest on interest. The Appellant submitted that they had paid total amount of Rs.57,30,616/-. This amount is amount deposited whether for duty or interest on duty. The Government has taken benefit of this amount whereas the Appellant had suffered it and prayed that the Appellants are entitled to get interest on Rs.18,07,914/- @ of 12% from the date of deposit. The Appellant relied upon the following decisions in this regard:- (i) Indore Treasure Market City Pvt. Ltd. Vs Commr. CGST [F.O. No.50125/2024 dt. 11.01.2024] (ii) Impressive Management Solution Pvt. Ltd. Vs....

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....of Rs.57,30,616/-. This amount is amount deposited whether for duty or interest on duty. The Government has taken benefit of this amount whereas the Appellant had suffered it. 11. I agree with the contention of the Appellant that the amount deposited during investigation will be entitled to refund along with interest. Such amount deposited is neither duty nor interest. I find that CBEC vide Circular No.984/8/2014-CX dated 16.09.2014 issued clarification as under:- "5. Refund of pre-deposit : 5.1 Where the appeal is decided in favour of the party/assessee, he shall be entitled to refund of the amount deposited along with the interest at the prescribed rate from the date of making the deposit to the date of refund in terms of Section 35....