Principal Commissioner Central Goods And Service Tax Vs Parle Agro Private Limited (Allahabad High Court)
Allahabad HC upholds 12% interest on refund of revenue deposits retained for over two decades in the matter of Principal Commissioner, CGST v. M/s. Parle Agro Pvt. Ltd. in Central Excise Appeal No. 18 of 2021
The Hon’ble Allahabad High Court, in the case of Principal Commissioner, CGST v. M/s. Parle Agro Pvt. Ltd. [Central Excise Appeal No. 18 of 2021], dismissed the Revenue’s appeal challenging the grant of interest to the assessee (Respondent) i.e. Parle Agro Pvt. Ltd. from the date of deposit and at the enhanced rate of 12% on the refund of revenue deposits made during investigation and proceeding.
Read CESTAT Allahabad order in this case: Interest on delayed refund of revenue deposit – CESTAT directs interest @ 12%
The dispute pertained to deposits made by the assessee in the year 1993 and 1994 during investigation, which were ultimately held by the CESTAT in its earlier order dated 31.01.2017, to be mere ‘revenue deposits’, not payments towards duty, fine or penalty. Since that order attained finality, the Hon’ble High Court held that the Revenue could not now contest the nature of such deposits. The Hon’ble Court further held that the interest liability was not governed by Section 11BB of the Central Excise Act, 1944, but arose from the unlawful retention of the assessee’s money for over 24 years.
