Case Law Details
Nakoda Ispat Ltd. Vs Commissioner of Customs (CESTAT Delhi)
Division Bench of this Tribunal in Parle Agro Limited, wherein the amount was deposited during the stage of investigation/audit, this Tribunal have held that on being successful in appeal, interest is allowable under Section 35FF from the date of deposit till the date of refund. Further, following the ruling of the Apex Court in the case Sandvik Asia Ltd. (supra), it has been held that interest shall be payable @ 12% p.a. Further, Single Member Bench of this Tribunal in the case of Riba Textiles Ltd vs. CCE & S.T., 2020(2) TMI 602-Chandigarh have also granted interest @ 12% p.a. under Section 35FF. This order had been appealed against by Revenue before Hon’ble Punjab & Haryana High Court in CEA No. 8/2022, by its judgement dated 14/03/2022, High Court have upheld the grant of interest @ 12% p.a., relying upon the ruling of the Apex Court in the case of Sandvik Asia Ltd (supra).
In view of aforementioned observations and findings, I allow these appeals and modify the impugned order(s) to the effect that the appellant shall be entitled to interest under Section 35 FF @ of 12% p.a. from the date of deposit till the date of grant of refund.
FULL TEXT OF THE CESTAT DELHI ORDER
The issue involved in these appeals is regarding allowance of proper interest under Section 35FF of Central Excise Act.
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