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2021 (6) TMI 462 - AT - Service TaxInterest on delayed refund - relevant date - to be calculated from the date of expiry of three months with effect from the date of receipt of application for refund or on expiry of the said period with effect from the date on which the order of refund is made - section 11BB of Central Excise Act, 1944 - Circular 398/31/98 dated 2.6.1998 - HELD THAT:- A close reading of Section 11BB, which now governs the question relating to payment of interest on belated payment of interest, makes it clear that relevant date for the purpose of determining the liability to pay interest is not the determination under subsection (2) of Section 11B to refund the amount to the applicant and not to be transferred to the Consumer Welfare Fund but the relevant date is to be determined with reference to date of application laying claim to refund - The non-payment of refund to the applicant claimant within three months from the date of such application or in the case governed by proviso to Section 11BB, non-payment within three months from the date of the commencement of Section 11BB brings in the starting point of liability to pay interest, notwithstanding the date on which decision has been rendered by the competent authority as to whether the amount is to be transferred to Welfare Fund or to be paid to the applicant needs no interference. Circular 398/31/98 dated 2.6.1998 has also been appraised wherein the Board has directed that the responsibility should be fixed for not dispensing for refund /rebate claims within three months from the date of receipt of application. The Board stressed with the provision of section 11BB of Central Excise Act 1944 are attracted automatically for no refund sanction beyond the period of three months hence the jurisdictional Central Excise officer were directed to not to wait of instructions from any superior officer and to ensure that no interest liability is attracted - In the present case such application is the one as was filed on 24.6.2006 which was the first application filed under section 11B(1) of the Act. The appellant is entitled for interest on the entire refund amount with effect from 24.6.2006 - Appeal allowed - decided in favor of appellant.
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