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2022 (10) TMI 880 - HC - Service TaxClaim of interest on Refund - Demand of service tax was set aside in the appellate proceedings - Calculation of interest for the period from the date the amounts were actually paid to the Government account, is correct or not - HELD THAT:- The Commissioner (Appeals) relying on the notification issued exempting payment of service tax allowed the appeal. It is on 21.11.2013 that the declaration is given that the appellant is not entitled to pay any service tax. Hence, any interest to be worked out on the refund has to be only from that day onwards. The appellant cannot contend that when a refund application is allowed, the interest has to be worked out from the date on which the service tax was actually paid into the Government. In fact Section 11BB and Section 11B of Central Excise Act 1944 deals with refund. It specifically states that the claim of interest on refund liability of the revenue to pay interest commences from the date of expiry of the 3 months from the date of receipt application for refund under Section 11B(1) of the Act and not on the expiry of the period from the date on which the order of refund is made. The Tribunal by the impugned order has held that the liability to pay interest on the amount of refund starts from the date on which the declaration was made that the appellant is not liable to pay service tax and declared that the appellant is entitled for interest from the date of order in original dated 21.11.2013 onwards. The appellant is entitled for interest on the refund made only from the date on which the original order was passed declaring that the appellant is not liable to pay service tax - Appeal disposed off.
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