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2016 (2) TMI 288 - AT - Central ExciseDemand of Interest - Refund by taking credit of the amount in their cenvat account and thereby taking a suo motto refund of pre-deposit - Held that:- As per the appellate order dated 22.6.2007 the pre-deposit amount has to be refunded to the respondent. The act of the respondents in taking refund of the amount by crediting the amount in their cenvat credit account, is only a procedural lapse. After taking credit, the respondents have declared the same in their ER-1 returns of July, 2007 itself. Moreover, they sent a letter dated 22.2.2008 along with copy of appellate order and requested for permission to utilize the credit, besides their request to issue formal order of sanctioning refund. All these establish that there was no suppression or pre-meditated act to evade payment of duty. The right of the party to get refund of pre-deposit cannot be denied on account of a procedural lapse. The Assistant Commissioner in any case ought to have considered the letter dated 22.2.2008 as an application for refund. As the amount is payable/refundable to the respondents w.e.f.22.6.2007, do not find any ground to demand interest on the very same amount alleging that the respondents took credit irregularly. The impugned order calls for no interference. - Decided in favour of assessee
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