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2022 (11) TMI 1004 - AT - Service TaxInterest on refund not sanctioned - case of Revenue is that Since the refund has been sanctioned within three months thereof that interest was not to be paid - HELD THAT:- It is observed that the amount of refund claimed was applied and has been sanctioned for the amount of pre-deposit as was deposited by the appellant pursuant to the directions of the Court. It is also observed that till date the liability of the appellant as was proposed vide three separate show cause notices of 22.10.2009, 22.10.2010 and 20.02.2011 has yet not finalised. The Original Adjudicating Authority has yet to adjudicate the same pursuant to the directions by the Tribunal to decide the matter afresh in line with the decision of Hon’ble Apex Court in the case of COMMISSIONER, CENTRAL EXCISE & CUSTOMS VERSUS M/S LARSEN & TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT] and also the decision of this Tribunal in the case of M/S BHAYANA BUILDERS (P) LTD. & OTHERS VERSUS CST, DELHI & OTHERS. [2013 (9) TMI 294 - CESTAT NEW DELHI (LB)]. Perusal makes it abundantly clear that amount in question of above facts is not yet held as the liability of the appellant. The department has no authority to retain such amount which otherwise is the amount of pre-deposit. Another fact of the present case is that pursuant to the said order application for refund was filed on 14.3.2019. It is held 14.3.2019 as the relevant date from which the calculation of interest be made - the adjudication of duty demand has yet not been finalized. In the given circumstances, Section 35FF has wrongly been invoked by Commissioner (Appeals). In view of entire above discussion, the order under challenge is hereby set aside, consequent thereto the appeal stands allowed holding the appellant entitled for the interest on the amount of Rs.14,15,694/- @12 per cent to be sanctioned to the appellant from the date of application for refund i.e. 14.03.2019 till the payment thereof. Appeal allowed.
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