Vodafone Idea Limited Vs Commissioner of CGST Commissionerate (CESTAT Delhi)
Summary: The Customs, Excise & Service Tax Appellate Tribunal, New Delhi, allowed the appeal filed by M/s. Vodafone Idea Limited and held that interest under section 35FF of the Central Excise Act, 1944, as applicable to service tax through section 83 of the Finance Act, 1994, was payable for the entire period from the date of pre-deposit until the date of refund.
The appellant had challenged a service tax demand confirmed by the Commissioner by order dated 30.5.2014. It made a pre-deposit on 12.11.2014 under section 35F of the Central Excise Act, 1944, as applicable to service tax through section 83 of the Finance Act, 1994, and subsequently lost before the Tribunal. On further appeal, the appellant succeeded before the High Court in CEAC 4/2018 by judgment and order dated 31.10.2018.
Nearly five years later, on 1.4.2024, the appellant wrote to the department seeking refund of the pre-deposit with interest under section 35FF. By order dated 31.5.2024, the pre-deposit was refunded with interest at the applicable rate for 1449 days, calculated from the date of pre-deposit until the date of the High Court judgment. Interest was not paid for the subsequent period of more than five years during which the appellant had not sent the department a letter enclosing the High Court judgment.
