CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL CHANDIGARH REGIONAL BENCH - COURT NO. I Excise Appeal No. 60156 of 2022 [Arising out of Order-in-Appeal No. 51/CE/CGST/Appeal/Gurugram/SKS/2021-22 dated 30.09.2021 passed by the Commissioner (Appeals), CGST, Gurugram]

HGI Automotives Pvt Ltd ……Appellant Plot No. 19, Sector 58, Faridabad, Haryana 121004 VERSUS Commissioner of Central Excise, Goods ……Respondent and Service Tax, Faridabad GST Bhawan, New CGO Complex, NH IV, Faridabad, Haryana 121001 WITH Excise Appeal No. 60157 of 2022 [Arising out of Order-in-Appeal No. 50/CE/CGST/Appeal/Gurugram/SKS/2021-22 dated 30.09.2021 passed by the Commissioner (Appeals), CGST, Gurugram]

Haryana General Industries ……Appellant Plot No. 638, Sector 14, Faridabad, Haryana 121007 VERSUS Commissioner of Central Excise, Goods ……Respondent and Service Tax, Faridabad GST Bhawan, New CGO Complex, NH IV, Faridabad, Haryana 121001 APPEARANCE:

Shri Hemant Bajaj, Advocate for the Appellants Shri Shivam Syal, Authorized Representative for the Respondent CORAM: HON’BLE MR. S. S. GARG, MEMBER (JUDICIAL)

FINAL ORDER NO. 60610-60611/2025 DATE OF HEARING: 17.04.2025 DATE OF DECISION: 05.06.2025 These two appeals are directed against Orders-in-Appeal Nos.

51/CE/CGST/Appeal/Gurugram/SKS/2021-22 and 50/CE/CGST/ Appeal/Gurugram/SKS/2021-22 both dated 30.09.2021 passed by the Commissioner (Appeals), CGST, Gurugram, vide which the learned Commissioner (Appeals) has held that the appellants are entitled to interest on pre-deposit of Rs.11,00,000/- respectively under Section 35FF of the Central Excise Act, 1944, as it stood prior to 06.08.2014 as the said pre-deposits have not been disbursed within 3 months of receipt of the CESTAT’s Final Order dated 02.02.2017. As the issue involved in both the appeals is common, therefore, both the appeals are taken up together for discussion and decision. A brief chronology of events in respect of both the appeals is as under in tabular form:

2. Briefly stated facts of the present case are that both the appellants, M/s HGI Automotives Pvt Ltd and M/s Haryana General Industries, were engaged in the manufacturing of Aluminium M.V. Parts etc falling under Chapter Heading 87 of the Central Excise Tariff Act, 1985. The appellants were granted refunds of the amount Rs.11,00,000/- each vide orders dated 11.04.2018 & 05.02.2018 respectively, which was deposited during the investigation; however, the said orders dated 11.04.2018 & 05.02.2018 were silent on the grant of interest on the amount ordered to be refunded. The appellants agitated the issue of non-grant of interest. On appeal, the CESTAT vide Final Order dated 27.04.2021 remanded the matter back to the Commissioner (Appeals) with the direction to decide the issue of interest within 90 days of the receipt of the said order dated 27.04.2021. The impugned orders dated 30.09.2021 have been passed in compliance of the direction of the CESTAT’s order dated 27.04.2021. Vide the impugned orders, the learned Commissioner (Appeals) has held that the appellants would be liable to interest on Rs.11,00,000/- each for the delay beyond 3 months from the receipt of the CESTAT’s Final Order dated 02.02.2017. Hence the present appeals seeking interest from the date of payment of Rs.11,00,000/-

each till its realization.

3. Heard both the sides and perused the material on records.

4. The learned Counsel appearing for the appellants submits that the impugned orders, not granting the interest on the refund from the date of payment till its realization, are not sustainable in law as the same has been passed without properly appreciating the facts and the law.

4.1 He further submits that the appellants are entitled to interest on the amount deposited for the period during which the Revenue withheld such deposits which were finally refunded vide orders 11.04.2018 & 05.02.2018. He further submits that the appellants remained deprived of the money which remained with the department for such a long period and was