2026 (8) TMI 725

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.... Goods and Service Tax and Central Excise, Appeal-I Commissionerate, Kolkata, G.S.T. Bhawan, 8th Floor, 180, Shantipally, Rajdanga Main Road, Kolkata - 700 107. 2. The facts of the case are that consequent to passing of the Final Order passed by the CESTAT bearing Nos. 76417-76418 of 2023 dated 11.08.2023, the appellant claimed refund of the pre-deposit made, amounting to Rs.16,18,165/-, along with interest. However, the authorities below, although sanctioned refund of the pre-deposit of Rs.16,18,165/-, did not entertain the appellant's claim for sanction of interest thereon. 3. After due process of law, the Final Order No. 77177 of 2024 dated 23.10.2024 came to be passed by the CESTAT, in terms of which the appellant filed an applica....

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....as attained finality. Accordingly, the appellant contends that they are eligible for interest on the refunded pre-deposit amount at the rate of 12% per annum in terms of the Orders passed by the Tribunal. 5. The Ld. Authorized Representative of the Revenue submitted that the refund involved in the present case is that of the pre-deposit made by the appellant towards the hearing of the Appeal, under Section 35F of the Central Excise Act, 1944. It is pointed out that Notification No. 24/2014-C.E.(N.T.) specifically allows for grants of interest at the rate of 6% in respect of pre-deposits made under Section 35F of the Act, which is therefore a statutory requirement. Accordingly, it is his contention that the Ld. Commissioner (Appeals) has ....

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....er annum. For the sake of ready reference, the relevant portion of the aforesaid Notification is reproduced below: - "In exercise of powers conferred by section 35FF of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby fixes the rate of interest at six percent per annum for the purpose of the said Section." 8.1. The above statutory mechanism has also been highlighted by the Central Board of Excise and Customs, New Delhi vide Circular No. 984/8/2014-CX., dated 16.09.2014, wherein it has been clarified as follows: - "1.3 Section 35FF of the Central Excise Act, 1944 and Section 129EE of the Customs Act, 1962 have also been substituted to provide for payment of refund along with interest at the prescri....