CESTAT Grants Interest on Refund

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), allowed the appeal filed by Ashirwad Equipment Pvt. Ltd. and held that the assessee was entitled to interest on the refund of ₹8.38 lakh. 

The Tribunal concluded that although the amount was initially deposited as service tax after issuance of the show cause notice, it had been consistently treated by the department as the statutory pre-deposit required for entertaining the appeal. 

Consequently, the refund was held to carry interest under Section 35FF of the Central Excise Act, 1944.