Leading Point Powertronics Pvt. Ltd. Vs Commissioner, Central Excise & CGST-Delhi South (CESTAT Delhi)
Division Bench of CESTAT Delhi in Parle Agro Pvt Ltd vs. Commissioner, CGST, Noida 2022 (380) ELT 219 (Tri.-All), held that interest on refund of amount deposited during investigation or deposited during pendency of appeal is allowable under Section 35EE of the Act and has to be paid from the date of deposit till the date of refund. The Division Bench have followed the ruling of Hon’ble Supreme Court in Sandvik Asia Ltd. Vs. Commissioner of Income Tax-I, Pune 2006 196 ELT 257 (SC). Learned Counsel further urges that the ruling of Division Bench of the Tribunal in Parle Agro have been confirmed by Hon’ble Punjab & Haryana High Court in Riba Textile Ltd. Vs. CCE & ST, 2020 (2) TMI 602. Accordingly, she prays for allowing the appeal and grant of consequential benefits.
4. Learned AR for revenue Mr. Gopi Raman relies on the impugned order.
5. Having considered the rival contentions, I find that the issue herein is squarely covered on all four by the precedent ruling of Division Bench of this Tribunal in Parle Agro Ltd. (Supra) which has also been confirmed by Punjab & Haryana High Court in Riba Textile Ltd. (Supra) in CEA No. 8/2022 order dated 14.03.2022.
6. In view of my aforementioned observations, I allow this appeal and hold that the appellant is entitled to interest on the refundable amount of Rs. 22,84,270/- from the date of deposit (27.10.2010) till the date of refund being 05.02.2021, @ 12% per annum. Appeal allowed.
FULL TEXT OF THE CESTAT DELHI ORDER
The issue in this appeal is regarding grant of proper interest on the amount refunded, which was deposited during investigation.
2. The brief facts are as follows:
