Riba Textiles Ltd Vs Commissioner of CE & ST (CESTAT Chandigarh)
The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal considered whether the appellant, Riba Textiles Ltd., was entitled to interest on amounts deposited during investigation and while obtaining stay of proceedings. The appellant sought interest on the delayed refund from the date of deposit until realization.
The dispute arose from an investigation conducted by DGCEI against the appellant in 2000. On 18.01.2000, the appellant deposited Rs. 4 lakhs. Subsequently, pursuant to the Tribunal’s direction while entertaining the stay application, the appellant deposited a further Rs. 50 lakhs during the period from 08.12.2007 to 29.02.2008. The substantive matter was ultimately decided in favour of the appellant in 2015. Thereafter, the appellant claimed refund of the amounts deposited during investigation and at the stage of the stay application. The refund claims were sanctioned on 02.06.2017, but the adjudicating authority did not grant interest from the date of deposit until realization. The appellant therefore challenged the denial of interest before the Tribunal.
The appellant relied upon the Tribunal’s decision in M/s Marshall Foundry & Engg. Pvt. Ltd. vs. Commr of CGST, Faridabad & others, Final Order No. 61058-61062/2019 dated 28.11.2019, along with the corrigendum dated 02.12.2019. The appellant contended that the issue had already been settled in its favour.
