Interest for Delayed Service Tax refund – From the date of application or date of order?

Scribetech India Healthcare Pvt Ltd. Vs Commissioner of Central Tax (CESTAT Bangalore)

The Bangalore CESTAT ordered for the interest for a delayed refund on the expiry of period of three months from the date of receipt of application, following the decission Supreme Court in the case of Ranbaxy Laboratories Ltd.

Section 56 of the CGST Act provides interest if the amount not refunded within sixty days from the date of receipt of application. In general, the refund application is followed with a show-cause notice, adjudication, and appeal thereon. Finally, the refund is granted if eligible. In this context, the SC decision helps to claim the interest from the refund application’s date.

FULL TEXT OF THE CESTAT JUDGEMENT

The appellant have filed these two appeals directed against the common impugned order dt. 16/03/2020 passed by the Commissioner(Appeals) whereby the Commissioner has rejected appeals of the appellant and upheld the order passed by the original authority. since the issue in both the appeals is identical and against a common impugned order, both the appeals are taken together for the purpose of discussion and disposal. The details of refund claims which have been rejected are given below:-

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