Interest on Refund Payable When Amount Treated as Pre-Deposit: CESTAT Allahabad

Ashirwad Equipment Pvt. Ltd. Vs Commissioner of Central Excise & CGST (CESTAT Allahabad) The appeal arose from an order rejecting the appellant’s claim for interest on the refund of ₹8,37,939, while allowing interest at 6% only on the statutory pre-deposit of ₹84,609 under Section 35F of the Central Excise Act, 1944, as made applicable to service tax matters through Section 83 of the Finance Act, 1994. The refund itself had been sanctioned after the CESTAT allowed the appellant’s earlier appeal and set aside the service tax demand, interest and penalties. The department had...