India Yamaha Motor Pvt. Ltd. Vs Commissioner of Central Goods and Service Tax (CESTAT Allahabad)
Summary: In the case of M/s India Yamaha Motor Pvt. Ltd. v. Commissioner of Central Goods and Service Tax, the CESTAT Allahabad addressed the issue of statutory interest on refundable pre-deposits. The appellant, engaged in manufacturing motor vehicles, appealed against a previous order that did not grant interest on a pre-deposit refund made following a successful appeal. The CESTAT held that Section 35FF of the Central Excise Act mandates interest on refunds, asserting that the obligation to grant interest is not contingent on a specific claim by the assessee. The Tribunal noted that even if the pre-deposit exceeded ₹10 crore, the department’s acceptance of this amount during the appeal process obligated them to provide interest upon its refund. The ruling emphasized that the requirement for interest is a matter of law, not discretionary, and that the lower authority erred in not addressing this aspect. Consequently, the CESTAT allowed the appeal, asserting that the interest should be calculated from the date of pre-deposit until its refund, thus upholding the appellant’s right to receive interest as per statutory provisions.
Introduction:The CESTAT, Allahabad in the case of M/s India Yamaha Motor Pvt. Ltd. v. Commissioner of Central Goods and Service Tax, Greater Noida [Excise Appeal No. 70103 of 2021 – Final Order No.- 70556/2024 dated September 02, 2024] allowed appeal and ruled that even if the interest is not claimed specifically by an Assessee, that does not absolve the Adjudicatory Authority from mandatory legal responsibility to grant interest on the amount refunded.
