Case Law Details
Al Tisource Business Solutions Pvt. Ltd Vs Deputy Commissioner of Central Tax (Karnataka High Court)
The Hon’ble Karnataka High Court in M/s. Al Tisource Business Solutions Pvt. Ltd. v. Deputy Commissioner of Central Tax, GST Commissionerate, Bengaluru [Writ Petition No.459 of 2022 (T-RES), dated November 10, 2022] set aside the order passed by the Deputy Commissioner denying the interest to the assessee for delayed refund and granted relief under Section 11BB of the Central Excise Act, 1944 (CE Act) to pay the interest at the rate of 6% per annum for committing delay in issuing service tax refund order.
Facts:
M/s Al Tisource Business Solutions Pvt. Ltd. (“the Petitioner”), during the period from June 30, 2010 to September 9, 2017, filed refund claims which were sanctioned during the period from March 28, 2018 to May 19, 2020, respectively. It was contended by the Petitioner that the Deputy Commissioner (“the Respondent”) has not processed these refund claims within the prescribed period of three months from the date of receipt of the applications as stated under Section 11-BB of the CE Act. Thus, the Petitioner made a representation on August 12, 2020 seeking payment of interest on the delayed refund by the respondent.
Instead on complying with the request of Petitioner, the Respondent issued a Show Cause Notice (“SCN”) dated October 20, 2020 calling upon the Petitioner as to why the request for grant of interest should not be rejected. Despite the facts and circumstances stated by the Petitioner, the Respondent passed the orders dated March 11, 2021 and March 18, 2021 (“the Impugned Orders”) rejecting the claim for interest put forth by the Petitioner.
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