Commissioner of C. Ex. vs Karnataka Pressure Vessels Ltd.

N. Kumar, J.—This is revenue''s appeal against the order passed by the Tribunal allowing interest on the amount ordered to be refunded relying on a judgment of the Apex Court. The order refunding the amount is challenged before the Tribunal in Appeal No. 309/2008, which is still pending consideration. If the amount is refundable then only the question of payment of interest would arise. The Tribunal instead of deciding the question whether the order of refund is valid or not has proceeded to decide the appeal regarding entitlement to interest on the said amount ordered to be refunded. That procedure is inappropriate. Therefore, the proper course would be to set aside the impugned order and remand the matter to the Tribunal so that the Tribunal would decide both the appeals together on merits as well as on the question of payment of interest as it would be in the nature of consequential order. Accordingly, we pass the following order:

"(i) The appeal is allowed and the impugned order is set aside.

(ii) The matter is remanded back to the Tribunal to be heard along with Appeal No. 309/08 and pass orders on both the appeals."