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2022 (7) TMI 458 - MADRAS HIGH COURTRecovery of erroneous refund of the tax paid - petitioner requested the respondents to sanction interest at 6% on the amount deposited by the petitioner during the investigation prior to issue of the show cause notice - works contract - HELD THAT:- Admittedly, only for the period after 1.6.2007 the petitioner was liable to pay service tax. A part of the demand proposing the show cause notice would also have been dropped - The petitioner was liable to pay service tax for the period between 1.6.2007 and thereafter 31.10.2008 under the category of “works contract”. The demand that was proposed and was confined only to Rs.67,97,827/-. The petitioner has not been paid interest separately on the amount that was deposited pending investigation. To that extent, the petitioner is entitled in interest at the rate of 6% on Rs.57,03,608/- only - The amount of tax which was paid by the petitioner for the subsequent period after 1.6.2007 could not have been refunded. However, curiously it appears to have also has been ordered to be refunded back. This would require a proper examination which fact is not forthcoming either from the petitioner or respondent. The case remanded back to the second respondent to re-examine the issue and pay/adjust interest payable to the petitioner firm and out of the amount paid. If there was an erroneous refund of the tax paid for the period after 31.10.2008, the respondents are directed to take appropriate steps to recover the aforesaid amount from the petitioner - petition allowed by way of remand.
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