2024 (9) TMI 112

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.... facts of the case in brief are that the Appellant M/s India Yamaha Motor Pvt. Ltd. is engaged in manufacture inter-alia of motor cycles, scooters, parts and accessories thereof, falling under Chapter 87 of the erstwhile Central Excise Tariff Act. The Appellant filed an appeal against an Order-in- Original No.161-167/DC/2017 dated 21.06.2017 before the Commissioner, CGST (Appeals) Noida and the Appellant made a pre-deposit for filing of such appeal. The appeal of the Appellant was allowed with consequential benefits vide Order-in-Appeal No.NOI-EXCUS-002-APP-141-19-20 dated 08.05.2019 by the Commissioner (Appeals). In terms of direction in the Order-in-Appeal dated 08.05.2019, the Appellant filed an application for refund of the amount pre-d....

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....t appeal the Tribunal. 3. Learned Advocate appearing on behalf of the Appellant submitted that undisputedly, the amount pre-deposited has already been refunded to the appellant, therefore, in terms of Section 35FF interest on refund of amount pre-deposited is mandatorily to be paid. The Appellant humbly submits that the obligation of refund of pre-deposit is not distinct and separate from the obligation of interest on such refund under Section 35FF of the Excise Act. Reliance in support of above submission, is placed on the ratio of the decision of the Tribunal in the case of L.G. Electronics India Pvt. Ltd. v. Commissioner of C. Ex., Noida, 2019 (369) E.L.T. 1395 (Tri. - All.), where it was held that interest needs to be paid when the s....

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....hat when the Appellant is refunded the amount of pre-deposit earlier paid in terms of Section 35F consequent upon the order from the Appellate Authority, interest shall also be paid to the Appellant from the date of payment of pre-deposit amount till the refund of such amount. Thus, I find that payment of interest along with refund under Section 35FF of the Excise Act, is not dependent on whether the same has been claimed by the Assessee or not. The same is axiomatic. In case, refund is paid to the Appellant consequent upon specific order for consequential relief from the Appellate Authority, the concerned Authority is under a statutory obligation to pay interest from the date of payment of pre-deposit amount till the refund of such amount.....

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....ainable. In the case of Cadila Pharmaceuticals Ltd. vs. Commissioner of Service Tax, Ahmedabad, 2018 (1) TMI 424 - CESTAT Ahmedabad, the Tribunal categorically held that Section 35FF itself provides for payment of interest on refund of pre-deposit amount and the same does not differentiate between the payment of pre-deposit made in cash or by debit in the Cenvat credit account. The relevant observations made by the Tribunal are reproduced below : - "6. It can be seen from the above reproduced Section, statute itself provides for an interest on refund of an amount deposited in furtherance of Sec. 36F consequent on the order of the Appellate Authority from the date of payment of the amount till the date of refund of such amount. The ....