TaxTMI 
TaxTMI 
2025 (8) TMI 1145
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....nal Order No. 60747/2019 dated 04.09.2019 set aside the entire demand along with penalty by allowing the appeal of the appellant. Thereafter, on 17.01.2020, the appellant filed refund claim of the amount deposited as pre-deposit during the proceedings before the Tribunal, which was sanctioned on 09.03.2020 and was dispersed to the appellant on 08.05.2020. The appellant, through the present appeal, is praying only for grant of interest @12% from the date of deposit till the refund is actually made, which was rejected by both lower authorities. 3. Heard both the parties and perused the material on record. 4. The learned Consultant for the appellant submits that the impugned order, rejecting the claim of interest on refund, is not sustainable in law and is liable to be set aside as the same has been passed without properly appreciating the facts and the law. 4.1 He further submits that as per the various decisions passed by the Tribunal, the appellant is entitled for interest @12% from the date of deposit of tax till its ultimate refund. In this regard, he relies on the following decisions: • M/s Fujikawa Power And M/s Kenzo International vs. CCE & ST, Chandigarh....
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....ns relied upon both the parties. I find that the only issue involved in the present case is whether the appellant is entitled to interest from the date of deposit till the refund is finally dispersed to the appellant and if so, at what rate? 7. Further, I find that in this case, the deposit of Rs. 15 lakhs was made under Section 35F of the Act on the direction of the Tribunal and finally the Tribunal allowed the appeal of the appellant on 04.09.2019. It is pertinent to note that during the said period, the provisions of Section 35FF of the Act provided payment of interest on delayed refund on the amount deposited under Section 35F of the Act and it is also provided that when the appeal of the assessee is allowed and the amount is refunded in pursuance of the order of the Appellate Authority then such amount shall be refunded and if it is not so refunded within a period of three months from the date of communication of the Appellate Authority's order, the interest shall be payable at the rate specified under Section 11BB of the Act after the expiry of aforesaid period of three month. 8. Further, I find that this issue has been considered by the Division Bench of the Tribunal i....
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....35FF of the Excise Act would be applicable under which no interest can be paid if the amount is deposited within three months from the date of communication of the order of the Appellate Tribunal and the relevant observations made in the judgment are reproduced below: "Section 35FF of the Act provides for the payment of interest on delayed refund of amount deposited under Section 35F of the Act. The aforesaid provision as it stood at the relevant time i.e. on 03.08.2016 or 28.11.2016, when the appeal of the petitioner was allowed and the amount was refunded provided that where any amount deposited in pursuance of the order of the Commissioner (Appeals) or the Appellate Tribunal is required to be refunded consequent upon the order of the Appellate Authority, such amount shall be refunded and if it is not so refunded within a period of three months from the date of communication of the order of the Appellate Authority, interest shall be payable at the rate specified under Section 11BB of the Act after the expiry of the aforesaid three months. A reading of the aforesaid provision reflects that any amount deposited pursuant to the order passed by any Authorit....
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.... interest to the petitioner would be governed by the unamended Section 35FF of the Act. Accordingly, if at all the petitioner would be entitled to interest on the amount refunded, it will be for the period the amount had remained with the respondents after three months from the date of communication of the appellate order." I also find that in the aforesaid case, the Tribunal has also considered the decision of Hon'ble Supreme Court in Sandvik Asia Ltd (supra) and has distinguished the same by observing as under: "13. Learned counsel for the appellant, however, placed reliance upon a decision of a learned Member of the Tribunal in J.K. Cement Works. In this case the pre-deposit was made on 31.03.2006 but the appellant succeeded before the High Court on 25.01.2018. While claiming refund of the pre-deposit amount, the contention that was advanced was that the appellant would also be entitled to interest under the amended provisions of section 35FF of the Excise Act. The learned Member allowed payment of interest, even though the amount was refunded within three months from the date of communication of the order following the decision of the Supreme Court in Sandv....
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....i.- Hyd.) wherein it has been held as under:- "5. I have considered the arguments made in the appeal memorandum and the relevant legal provisions. The proviso to amend Section 35FF makes it clear that in respect of any amounts pre-deposited prior to 6-8-2014 will continue to be covered by the provisions of the unamended Section 35FF. The unamended provisions provided for payment of interest only if the predeposit was not refunded within three months from the date of communication of the order of the appellate authority. Therefore, no interest is payable to the appellant in this case. The impugned order is correct and calls for no interference. Accordingly, the appeal is rejected and the impugned order is upheld." 10. In the light of the discussions made in the preceding paragraphs, I am of the considered opinion that in the instant matter the interest on refund has to be dealt with in accordance with the erstwhile section 35FF which clearly mandates the payment of interest only if there was a delay beyond three months. The statutory period prescribed therein is 3 months from the date of communication of the order of the Appellate Authority. While going through the....