Order date – 14 November 2022

 Facts –

• The Appellant, M/s. Premium Real Estate Developers, was issued show cause notice dated 22.04.2010, whereby service tax demand was proposed of Rs.1,55,10,433/-, the said proposed demand was confirmed along with penalty.
• The appellant filed an appeal and made pre-deposit on 2.2.2015 of Rs.38,57,636/-. Accordingly the Tribunal allowed the appeal which set aside the demand and penalty. On request of refund of pre-deposit the Adjudicating Authority on 5.3.2020, granted refund of the principal plus interest @6% p.a. from the date of deposit.
• Being aggrieved revenue filed an appeal and the Commissioner (Appeals) directed the Adjudicating Authority to recalculate the interest.
• Aggrieve appellant had filed an appeal.

Issue –

• Whether the interest on pre-deposit is calculated as per the provision of Section 35FF?

Order –

• The Tribunal finds that the provision of Section 35 FF provides for grant of interest from the date of deposit till the date of grant of refund.
• Tribunal allowed the interest @12% per annum, following the ruling of the Division Bench in the case of Parle Agro Ltd. 
• The Adjudicating Authority was directed to grant differential interest from the date of deposit till the date of refund within a period of 60 days from the date of receipt of copy of this order.
• Accordingly, the appeal is allowed. The impugned order-in-appeal is set aside.