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2021 (12) TMI 285 - AT - Central ExciseEntitlement to interest on refund - claim of interest rejected on the ground that at the time of sanction of refund and appropriation thereof, there was a confirmed demand - mandatory pre-deposit required under Section 35F in respect of appeal pending before the Commissioner (Appeals) - HELD THAT:- There is chequered history of the entire case however, the case can be decided brief. The refund of the appellant was appropriated against the confirmed demand. The said confirmed demand order was under challenge in appeal before the Commissioner (Appeals). The dispute was that whether the appellant’s payment of pre-deposit through cenvat account is legal and correct for entertaining the appeal. The Commissioner (Appeals) was of the view that the appellant was supposed to make pre-deposit payment in cash. This issue has been taken to the Hon’ble Gujarat High Court. The Hon’ble Gujarat High Court in CADILA HEALTH CARE PVT LTD. VERSUS UNION OF INDIA [2018 (11) TMI 80 - GUJARAT HIGH COURT] held that the appellant’s payment of pre-deposit through cenvat in appeal filed before the Commissioner (Appeals) is acceptable. The appeal filed before Commissioner (Appeals) along with the pre-deposit, the demand amount of the said case could not have been adjusted against the sanctioned refund, therefore, the refund ought to have been paid on the date of sanction itself - Since the refund was payable on the date of sanction, the appellant is entitled for the interest from the date of sanction till the date of payment of refund amount. Appeal allowed - decided in favor of appellant.
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