2026-VIL-1285-CESTAT-KOL-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise – Applicable rate of interest on Refund of Pre-deposit - Appellant filed an appeal before the Tribunal and made a pre-deposit as required under Section 35F of the Central Excise Act 1944, and following the Tribunal's Final Order, claimed refund of the pre-deposit amount along with interest thereon - Authorities below granted refund of the pre-deposit but denied interest and thereafter granted interest at the rate of 6 percent per annum pursuant to a subsequent Tribunal order - Whether the appellant is entitled to interest at 12 percent per annum on the refunded pre-deposit amount or whether the statutory rate of 6 percent per annum prescribed under Notification is the applicable rate – HELD - The refund of pre-deposit under Section 35F of the Central Excise Act 1944 and its interest are governed by the statutory notification. Notification No. 24/2014-C.E.(N.T.) dated 12.08.2014 specifically prescribes the rate of interest at 6 percent per annum for the purpose of Section 35FF of the Central Excise Act 1944. The CBIC vide Circular No. 984/8/2014-CX dated 16.09.2014 clarified that Section 35FF provides for payment of refund along with interest at the prescribed rate on the amount pre-deposited from the date of payment till the date of refund with the specified rate of interest being 6 percent. The statutory notification categorically provides for interest rate of 6 percent in respect of refund of pre-deposits and does not provide for any other rate. There is no merit in the appellant's claim for 12 percent interest as the statutory mechanism does not contemplate such a rate for pre-deposits under Section 35F - The impugned order is upheld and the appeal is rejected
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