Marshall Foundry & Engg. Pvt. Ltd. Vs Commissioner of CGST (CESTAT Chandigarh)
Summary: The appellants challenged orders rejecting interest on refunds of amounts deposited during investigation and, in one case, pursuant to a Tribunal stay order. Except M/s.Marshall Auto Industries Limited, the appellants had made deposits during the investigation; that appellant had deposited Rs.3,50,000/- in terms of Stay Order No.8.6.2009. After investigation, show cause notices were issued and the credit was denied. The adjudication order was challenged before the Tribunal and remanded for fresh adjudication. On fresh adjudication, the credit was again denied and recovery was ordered. The subsequent challenge succeeded when the Tribunal, by order dated 5.9.2018, set aside the adjudication order. The deposits consequently became refundable. Refund claims were sanctioned, but the authorities rejected the further claim for interest from the date of deposit until realization.
The appellants submitted that amounts deposited during investigation were deemed to be under protest, relying on CCE vs. Pricol Limited, CCE vs. Eveready Industries India Limited and Gujarat Engineering Works vs. CCE. They further relied on CCE, Chennai-II vs. Ucal Fuel Systems Limited for interest from the date of deposit till payment and on Arihant Tiles & Marbles Pvt.Ltd. for interest at 12%.
