Order Date – 28 May 2024

Parties: M/s Nidhi Auto Pvt. Ltd. Vs Commissioner of Central Excise & Service Tax, Noida

Facts –

• The Appellant, M/s Nidhi Auto Pvt. Ltd., filed application for refund of Rs.1.52 crores along with interest in terms of order of the Tribunal on 23.08.2019. The Assistant Commissioner, sanction refund claim of pre-deposit along with interest total amounting to Rs.1.93 crore.
• Aggrieved by the said order, revenue filed an appeal for modifying the order of Assistant Commissioner, to the extent of grant of erroneous refund on the ground that the interest was payable only from the date of filing appeal before the Tribunal and not form of date of deposit. The Appeal was allowed in favour of Revenue.

Issue –

• Whether interest on refund is payable from the date of deposit or from the date of filing appeal before the Tribunal?

Order –

• The Tribunal observed that Appellate Authority do not have any discretion to determine the amount to be considered for entraining the appeal, the amount has been fixed statutory and the said amount is only governed by the provisions of Section 35F and 35FF.
• the decision of Hon’ble Supreme Court has in the decision of M/s Sandvik Asia Ltd. In case of M/s Willowood Chemicals Pvt. Ltd. [2022 (60) GSTL 3 (SC)], clearly held that the refund of any amount as provided by the statute needs to be considered in terms of provisions of statute, even the refund of interest will governed by the provisions of said statute that being so granting interest on the entire amount from the date of deposit cannot be said to be correct in the light of the provisions of sections referred  and the decision of Hon’ble Apex Court in case of M/s Willowood Chemicals Pvt. Ltd.
• The Appeals are dismissed.