"CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL ALLAHABAD E-Hearing REGIONAL BENCH - COURT NO.I Service Tax Appeal No.70589 of 2024 (Arising out of Order-in-Appeal No.GZB-EXCUS-000-APPL-MRT-175-23-24 dated 29.11.2023 passed by Commissioner (Appeals) Customs, CGST & Central Excise, Meerut) M/s Swadeshi Polytex Ltd., …..Appellant (Kavi Nagar Industrial Area, Ghziabad, U.P.) VERSUS Commissioner of Central Excise & CGST, Ghaziabad ….Respondent (Commissionerate, Meerut) APPEARANCE: Shri Kapil Vaish, Chartered Accountant for the Appellant Smt. Chitra Srivastava, Authorized Representative for the Respondent CORAM: FINAL ORDER NO.- 70634/2025 DATE OF HEARING : 17.07.2025 DATE OF PRONOUNCEMENT : 10.09.2025 The present appeal has been filed by the Appellant assailing the Order-in-Appeal No.GZB-EXCUS-000-APPL-MRT-175-23-24 dated 29.11.2023 passed by the Commissioner (Appeals) CGST, Meerut. 2. The facts of the case in brief are that the Appellant had filed a Classification List No.07/82 on 18.02.1982, claiming benefit of Notification No.16/82 dated 04.02.1982. After approval of classification list, a Show Cause Notice1 dated 18.10.1982 was issued proposing to deny benefit of said notification. The Assistant Commissioner confirmed the demand of Rs.8,58,665/-. The said amount of Rs.8,58,665/- was paid under protest. Thereafter, the Appellant started paying duty/amount under 1 SCN HON’BLE MR. P.K. CHOUDHARY, MEMBER (JUDICIAL) Service Tax Appeal No.70589 of 2024 2 protest. On finalization of dispute vide Final Order dated 10.08.1988, Appellants filed refund application on 05.01.1989 for Rs.23,79,767/- of duty/amount paid under protest. The said refund claim was rejected on the ground of unjust enrichment. 3. The matter of refund remained pending, at different levels of adjudication/appeal on the issue of unjust enrichment. Finally vide Order-in-Appeal dated 28.03.2022, Commissioner (Appeals) held that there was no unjust enrichment. He therefore, directed to grant refund alongwith interest. Vide Order-in-Original dated 30.06.2022, the Assistant Commissioner granted refund of Rs.23,79,766/- but rejected claim for interest on the ground that refund application has been filed on 06.04.2022 and refund has been granted within three months. The learned Commissioner (Appeals) vide Order-in-Appeal dated 29.11.2023 granted interest from 28.06.2022 to 30.06.2022 after observing that the Commissioner (Appeals) vide its earlier order dated 28.03.2022 had allowed the appeal and directed the Adjudicating Authority to grant refund. Thus, the claim attained finality with the said order dated 28.03.2022. Accordingly, the issue of interest arises only after 28.06.2022 i.e. after three months from the date of earlier appellate order. 4. The learned Chartered Accountant, Shri Kapil Vaish submitted that it is a settled law that amount deposited during investigation and proceedings, if ultimately found to be not sustainable, is to be treated as Revenue Deposit. He relied upon the Tribunal’s decision in the case of Parle Agro Pvt. Ltd Vs. CCE, Noida reported as 2018 (360) E.L.T. 1005 (Tri.-All.). He also submitted that in a series of cases, it has been held that in case of refund of revenue deposit, interest is to be granted @ 12% from the date of deposit, to the date of refund. He relied upon the following judgments:-  Parle Agro Pvt. Ltd. Vs. CCE reported in 2022 (380) E.L.T. 219 (Tri. – All.).  Final order No.75189/2022 dated 11.04.2022 in the case of M/s Green Valley Industries Ltd. Service Tax Appeal No.70589 of 2024 3 5. The learned Departmental Authorized Representative justified the impugned order and prayed that the appeal filed by the Appellant, being devoid of any merits, may be dismissed. 6. Heard both the sides through video conferencing and perused the appeal records. 7. I find from the facts of the case that it is not in dispute that the Appellant had deposited the amounts during investigation/adjudication proceedings which was later on ordered to be refunded by Commissioner (Appeals). However, interest was not granted. Appellants have claimed that they are eligible for interest from the date of deposit to the date of refund. 8. I find that in similarly placed situation, the Tribunal in the case of M/s Parle Agro Pvt. Ltd. Vs. Commissioner, CGST Noida [2022 (380) E.L.T. 219 (Tri.-All.)] has passed a detailed order after analyzing various provisions in this regard. To quote:- “24. Excise Appeal No.70628 of 2019 has been filed by the appellant for a relief that interest at the rate of 12% should be granted to the appellant from the date of deposit of the amount instead of 6%, as ordered by the Commissioner (Appeals). In this connection, Learned Counsel for the appellant has placed reliance upon the following decisions : (i) Sandvik Asia Ltd. v. Commissioner of Income Tax-I, Pune [2006 (196) E.L.T. 257 (S.C.) = 2007 (8) S.T.R. 193 (S.C.)]. (ii) Pace Marketing Specialities v. Commissioner of Central Excise [2012 (27) S.T.R. 420 (All.) = 2011 (274) E.L.T. 13 (All.)]. (iii) Ebiz.Com Pvt. Ltd. v. Commissioner of Central Excise, Customs & S.T. [2017 (49) S.T.R. 389 (All.)] (iv) Riba Textiles Ltd. Village Chidana, Tehsil Gohana Distt. Sonepat, Haryana v. Commissioner of Central Excise and Service Tax, Panchkula [2020-TIOL-932-CESTAT- CHD]. 25.Before adverting to the aforesaid decisions relied upon by the Learned Counsel for the appellant, it would be Service Tax Appeal No.70589 of 2024 4 appropriate to refer to the provisions contained in the Central Excise Act, 1944 [Excise Act] relating to refund. 26.Section 11A of the Excise Act relates to recovery of duties not levied or not paid or short levied or short paid. It provides that in such cases, the central excise officer shall serve a notice on the person chargeable with duty requiring him to show cause why he should not pay the amount of duty along with interest payable thereon under Section 11AA. 27.Section 11AA deals with interest on delayed payment of duty. It provides that the person, who is liable to pay duty, shall, in addition to the duty, be liable to pay interest at the rate specified in sub-section (2). The interest rate that has been specified in sub-section (2) is not below 10% and not exceeding 36% per annum as the Central Government, by notification in the Official Gazette fix. 28.Section 11B of the Excise Act deals with claim for refund of duty and interest, if any, paid on such duty. It provides that any person claiming refund of any duty of excise and interest may make an application for such refund of duty and interest. 29.Section 11BB provides for interest on delayed refund. It states that if any duty ordered to be refunded under sub-section (2) of Section 11B is not refunded within three months from the date of receipt of the application, then the applicant shall be entitled to interest after the expiry of three months from the date of receipt of the application at such rate not below 5% and not exceeding 30% as may be notified by the Central Government in the Official Gazette. 30.In the present case, the provisions of Section 11B of the Excise Act would not be applicable. This is for the reason that the appellant was not claiming refund of duty. The applicant, as noticed above, had claimed refund of the revenue deposit. Such a finding has also been clearly recorded by the Tribunal in the order dated 31-1-2017, which order has attained finality. 31.Section 11D of the Excise Act deals with duties of excise collected from the buyer to be deposited with Central Government. It provides that every person who is liable to pay duty and has collected any amount in excess of the duty assessed from the buyer of such goods in any manner as representing duty of excise, shall forthwith pay Service Tax Appeal No.70589 of 2024 5 the amount so collected to the credit of the Central Government. 32.Section 11DD of the Excise Act deals with interest on the amount collected in excess of the duty. It provides that where an amount has been collected in excess of the duty from the buyer of such goods, the person who is liable to pay such amount shall, in addition to the amount, be liable to pay interest at such rate not below ten per cent., and not exceeding thirty-six per cent per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette. 33.There is no provision in the Excise Act, which deals with refund of revenue deposit and so rate of interest has not been prescribed, when revenue deposit is required to be refunded. 34.To be able to have some guidance regarding the rate of interest in case revenue deposit has to be refunded, the aid of the interest provisions under Section 11AA (which deals with interest on delayed payment of duty), Section 11BB (which deals with interest on delayed refunds under Section 11B(2) and Section 11DD (which deals with interest on the amount collected in excess of the duty) can be taken. 35.The Notification issued under Section 11AA of the Excise Act provides interest at the rate of fifteen per cent per annum. The notification is reproduced below : Notification No. 15/2016-C.E. (N.T.), dated 1-3-2016 Notification Under Section 11AA Rate of interest on delayed payment of duty (w.e.f. 1-4-2016). - In exercise of the powers conferred by section 11AA of the Central Excise Act, 1944 (1 of 1944) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 5/2011-Central Excise (N.T.), dated the 1st March, 2011 published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i), vide, number GSR 136(E), dated the 1st March, 2011, except as respects things done or omitted to be done before such supersession, the Central Government hereby fixes the rate of interest at fifteen per cent per annum for the purpose of the said section. Service Tax Appeal No.70589 of 2024 6 2. This notification shall come into force from the 1st day of April, 2016. 36.The Notification issued under Section 11BB provides interest at the rate of six per cent per annum. It is reproduced below : Notification No. 67/2003-C.E. (N.T.), dated 12-9- 2003 Notification Under Section 11BB Interest @ 6% per annum on delayed refunds. - In exercise of the powers conferred by section 11BB of the Central Excise Act, 1944 (1 of 1944) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 17/2002- Central Excise (N.T.), dated the 13th May, 2002 [GSR 353(E), dated the 13th May, 2002], except as respect things done or omitted to be done before such supersession, the Central Government hereby fixes the rate of interest at six per cent per annum for the purpose of the said section. 37.The Notification issued under Section 11DD provides interest @ of 15% per annum on the amount collected in excess of duty. It is reproduced below : M.F. (D.R.) Notification No. 68/2003-C.E. (N.T.), dated 12-9-2003 Notification Under Section 11DD Interest @ 15% per annum on amounts collected in excess of duty. - In exercise of the powers conferred by section 11DD of the Central Excise Act, 1944 (1 of 1944) the Central Government hereby fixes the rate of interest at Fifteen per cent per annum for the purpose of the said section. 38.It would also be to pertain to refer to the Notification issued under Section 11AB of the Excise Act, as it existed prior to 8-4-2011. It provides interest @ 18% per annum. The said Notification is reproduced below : “Notification No. 6/2011-C.E. (N.T.), dated 1-3-2011 Notification Under Section 11AB Service Tax Appeal No.70589 of 2024 7 Rate of interest on delayed payment of duty. - In exercise of the powers conferred by section 11AB of the Central Excise Act, 1944 (1 of 1944) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 66/2003- Central Excise (N.T.), dated the 12th September, 2003 [GSR (E), dated the 12th September, 2003], except as respects things done or omitted to be done before such supersession, the Central Government hereby fixes the rate of interest at eighteen per cent per annum for the purpose of the said section. This notification shall come into force from the 1st day of April, 2011.” 39.In this connection reference can also made to the decisions of the Allahabad High Court in Pace Marketing Specialities and Ebiz.Com Private Limited, wherein after making reference to the decision of the Supreme Court in Sandvik Asia Ltd., the High Court granted interest at the rate of 12% per annum in matters relating to refund of amount deposited during investigation and adjudication. 40.In Riba Textiles, the Tribunal also granted interest at the rate of 12% on refund of amount deposited during investigation and at the time of entertaining the stay application. 41.In view for the aforesaid decisions, and the fact that the rate of interest varies from 6% to 18% in the aforesaid Notifications issued under Sections 11AA, 11BB, 11DD and 11AB of the Excise Act, the grant of interest @ 12% per annum seems to be appropriate. 42.Thus, for the reason stated above, Excise Appeal No.70628 of 2019 is allowed and the order dated 28-5- 2019, passed by the Commissioner (Appeals) is modified to the extent that interest shall be granted to the appellant @ 12% instead of @ 6% from the date of deposit till the date of payment. Excise Appeal No.70674 of 2019 filed by the Principal Commissioner for setting aside the order dated 28-5-2019, passed by the Commissioner (Appeals) is dismissed.” 9. The aforesaid view of the Division Bench has also been followed in a series of cases, including Final Order No.75189/2022 dated 11.04.2022 in the case of M/s Green Service Tax Appeal No.70589 of 2024 8 Valley Industries Ltd. Thus, in light of the view taken by this Tribunal in the case of Parle Agro Pvt. Ltd.(supra), it is my considered view that the Appellant is entitled to interest @ 12% from the date of deposit till the date of receipt of such refund. The order of the First Appellate Authority is modified to the above extent. The Lower Authorities are directed to compute the eligible interest as above and pay the same within three months from the date of communication of this order. 10. The appeal filed by the Appellant is allowed with consequential relief, as above. (Order pronounced in open court on - 10.09.2025) Sd/- (P. K. CHOUDHARY) MEMBER (JUDICIAL) LKS "