2015 (12) TMI 1645 - HC - Service Tax

Refund claim - the CESTAT directed the respondents to remit the amount paid by the petitioner towards service tax and interest under protest forthwith - Held that - although there is no stay order passed by the Supreme Court the refund has not been made to the petitioner for over two years - the respondents are directed to process the refund and to pay the refund due to the petitioner - petition allowed - decided in favor of petitioner.

Summary

Issues:
Mandamus sought for refund of service tax, CESTAT order quashed, Appeal filed in High Court, Appeal held not maintainable, Appeal filed in Supreme Court, No stay granted, Delay in refund.

Analysis:
The writ petition before the Delhi High Court sought a mandamus against respondent No.3 for the processing and disbursement of a service tax refund amounting to Rs. 40,05,60,701 along with interest. The petitioner's counsel highlighted an order by the CESTAT which directed the refund of the amount paid towards service tax and interest under protest. Subsequently, the respondents filed an appeal in the High Court, which was deemed not maintainable due to the question relating to the levy or chargeability of service tax. Following this, an appeal was made to the Supreme Court under relevant sections of the Central Excise Act and the Finance Act, with no stay order granted by the Supreme Court.

Despite the absence of a stay order, the refund had not been processed for over two years, leading to the matter being listed before the Supreme Court. The Delhi High Court, considering the delay in refund, directed the respondents to process and pay the refund due to the petitioner along with interest within six weeks from the date of the judgment. Consequently, the writ petition was disposed of, emphasizing the obligation of the respondents to adhere to the directive for refund in accordance with the law.