J. K. Cement Works Vs Commissioner, Central Excise, Central Goods and Service Tax (CESTA Delhi)
Conclusion: Adjudicating Authority was directed to grant interest from the date of deposit till the date of grant of a refund at the rate of 12% per annum. Such interest on refund should be granted within a period of 60 days from the date of receipt of, or service of a copy of the order.
Held: Assessee had preferred application for refund and also prayed for grant of interest. Adjudicating Authority was pleased to grant refund of the principal amount however, as regards the interest claim, the order was non-speaking. CIT (Appeals), rejected the appeal and denying the claim of interest. It was held that assessee was entitled to claim interest from the date of payment of initial amount till the date of its refund. As the provisions of section 243 Income Tax Act, 1961 and section 35FF of Central Excise Act, 1944, were pari-materia. Therefore, following the decision in the case of Sandvik Asia Ltd. and Sony Pictures Networks India Pvt. Ltd. assessee was entitled to claim interest from the date of payment of initial amount till the date its refund @ 12% per annum. Adjudicating Authority was directed to grant interest from the date of deposit till the date of grant of a refund at the rate of 12% per annum. Such interest on refund should be granted within a period of 60 days from the date of receipt of, or service of a copy of the order.
FULL TEXT OF THE CESTAT JUDGEMENT
The appellant has filed the present appeal against the order-in- appeal dated 19.11.2018 passed by the Commissioner (Appeals), Central Excise & Central Goods & Service Tax, Jodhpur, denying interest on delayed refund i.e. from the date of deposit till the refund of the pre-deposit of principal amount. The details are as follows:-
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