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2016 (12) TMI 26 - CESTAT NEW DELHIInterest on delayed refund of pre-deposit - The Commissioner (Appeals) held that the date for interest calculation starts after three months from the date of refund application. The said three months cannot start from the date of original application as it was not in the prescribed manner supported by documentary evidence - the appellants filed claim for interest after six years of sanction of refund - time bar - Held that: - the appellants deposited an amount of ₹ 2 crores during the course of investigation itself. Apparently, the same is considered, all throughout, as a deposited amount not a regular payment of duty. We note that the Hon’ble Supreme Court in CCE, Hyderabad vs. I.T.C. Limited [2004 (12) TMI 90 - SUPREME COURT OF INDIA] held that in terms of draft Circular by the Board interest shall be payable for delay beyond of three months after final disposal of dispute between the parties. The contents of the Circular was ordered to be part of the order of the court. In this connection, we note that the Board vide Circular dated 08/12/2004 held that such refund should be disposed of within three months from the date of the order of the Tribunal/Court etc., failing which due interest shall be payable - We find that the Original Authority categorically held that the amount of ₹ 2 crores is a pre-deposit amount, which was paid by the appellant at the investigation stage and the same has been considered as pre-deposit specifically vide interim order dated 06/07/2000 passed by the Tribunal. The appellants are entitled for interest for the period beyond three months from the date of final order of the Tribunal dated 04/04/2001 till sanction of the amount to the appellant. Such interest is automatic and no separate claim is mandated for the same. As such, we find the impugned order is not legally sustainable with reference to rejection of interest - appeal allowed - decided in favor of appellant-assessee.
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