TMI Blog2022 (10) TMI 880X X X X Extracts X X X X X X X X Extracts X X X X ..... tend 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 liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hew and cashew kernels are agricultural products and the demand of service tax is not maintainable as the commission received by the appellant was exempted from payment of service tax under notification No.13/2003-ST dated 20.6.2003 and later amended by notification No.8/2004. 3. On the basis of the order of the appellate authority the appellant filed application for refund on 14.3.2016 claiming a refund of Rs.21,86,663/- paid as service tax for the period from October 2004 to September 2013. A show cause notice was issued to the appellant directing the appellant to show cause why the application for refund should not be rejected as time barred. Thereafter, the application for refund was rejected by the original authority vide order in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest was payable. Later by Annexure-A9 order, the Deputy Commissioner rejected the request for the appellant for interest on the ground that the refund was sanctioned within 3 months as per section 11B of the Central Excise Act. The appellant took the matter before the Commissioner Appeals challenging the various orders passed by the Subordinate authorities rejecting claim for interest of service tax during period from October - December 2004 to July - September 2013. The Commissioner (Appeals) allowed the appeal and ordered to sanction interest for the period after 3 months from the date of which the appellant filed application for refund and not on date on which the appellant paid service tax to the government. Consequently an amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unts were actually paid to the Government account, is bad. He contends that the interest has to be worked out from the date on which the appellant was compelled to pay service tax though he was exempted from paying service tax by notification. Therefore, according to the counsel for the petition the interest has to be worked out from 1.2.2005 to 3.5.2013. 7. The counsel for the respondent submits that it is as per Annexure-A2 order dated 21.11.13 that for the first time the contention of the appellant that he is not liable to pay service tax was declared and that only from that day onwards he can claim interest at the most. A perusal of Anneuxre-A2 shows that the main issue that was decided in the appeal was the liability to pay service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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