The Last DDT
Mandatory pre-deposit - Refund
WITH effect from 06.08.2014, appeals to Commissioner (Appeals) and the Tribunal shall be filed after making the 7.5%/10% mandatory pre-deposit in terms of Sec 35F of the Central Excise Act, 1944. At the time of filing appeal itself, the registry verifies the challan and unless it is shown that the mandatory pre-deposit is made, the appeals are not accepted. There is no quarrel with such verification, but when the appeals are allowed by the CESTAT/Commissioner (Appeals), the appellants are entitled for refund of the pre-deposit along with interest from the date of making the deposit in terms of Section 35FF. However, it is learnt that getting refund is not easy. When the assessees are approaching the department for refund, the claims are subjected to queries like "produce original challan" (if there was no payment, why the appeal would have been entertained in the first place?), department has not yet accepted the order and so on.
To make things easier, just as the appellate forums are strictly verifying the challans at the entry check point of the appeals, in case of favourable orders, the order itself should contain a standard instruction to the department to refund the pre-deposit along with interest under Sec 35FF. This would help the successful appellants in getting refund instead of making them running from pillar to post to get back their money.