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2022 (11) TMI 2 - AT - Service TaxRelevant date for calculation of Interest - delayed grant of refund - case of appellant is that interest should have been granted after the expiry of three months from the date of filing of the refund applications - section 11BB of the Excise Act. Whether interest should be paid to the appellant after the expiry of three months from the date of filing of the four refund claims on 30.03.2017, 20.06.2017, 31.07.2017 and 28.08.2017 or it should be paid after the expiry of three months from 29.01.2020 on which date the appellant had merely made a request to the Department to grant refund pursuant to the order passed by the Tribunal on 09.01.2020? HELD THAT:- The applications were actually filed by the appellant for refund of the amount on 30.03.2017, 20.06.2017, 31.07.2017 and 28.08.2017. Section 11BB of the Excise Act provides that if any duty ordered to be refunded under section 11B(2) is not refunded within three months from the date of receipt of application under sub- section (1), there shall be paid to the applicant interest from the date immediately after the expiry of three months from the date of receipt of such application till the date of refund of such duty. The relevant date, therefore, is the date on which the application for refund is filed. The decisions in COMMISSIONER OF C. EX., PUNE-III VERSUS BALLARPUR INDUSTRIES LTD. [2008 (7) TMI 94 - HIGH COURT BOMBAY]. M/S DABUR INDIA LIMITED VERSUS UNION OF INDIA AND 2 OTHERS [2016 (9) TMI 787 - ALLAHABAD HIGH COURT] and RANBAXY LABORATORIES LTD. VERSUS UNION OF INDIA AND ORS. [2011 (10) TMI 16 - SUPREME COURT] emphasise that though the order granting refund may have been passed on a subsequent date but interest has to be paid after the expiry of three months from the date of filing of applications for refund. The Commissioner (Appeals) committed an illegality in construing 29.01.2020 as the date of filing of the refund application whereas the dates of filing of the refund applications were 30.03.2017, 20.06.2017, 31.07.2017 and 28.08.2017. On 29.01.2020 the appellant had merely submitted an application for implementation of the order passed for refund of the amount claimed in the four applications - The order passed by the Commissioner (Appeals) is, therefore, modified to the extent that interest shall be payable to the appellant after the expiry of three months from the actual date of filing the refund applications i.e. 30.03.2017, 20.06.2017, 31.07.2017 and 28.08.2017 till the date the refund was made i.e. 28.09.2021. Appeal allowed.
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