CESTAT says Investigation Deposit Carries Interest From Date of Deposit

Bengal Hammer deposited ₹50 lakh during a 1996 investigation into alleged MODVAT irregularities, nearly four years before the SCN was issued. After the Tribunal finally held the credit to be admissible and the amount was refunded in 2020, CESTAT held that the deposit had ceased to have the character of excise duty and awarded interest at 12% per annum from the respective dates of deposit.