Case Law Details
Shahi Exports Ltd. Vs Commissioner of CE & ST (CESTAT Chandigarh)
I find that it is an amount paid by the appellant as service tax under protest during the course of investigation. This fact is not in dispute. When any amount paid under protest, it is neither pre-deposit nor service tax; it is only a deposit made by the appellant and the said amount was retained by the Revenue without any authority of law as held by this Tribunal that the appellant was not liable to pay service tax. The order of this Tribunal has attained finality. In that circumstance, the appellant is entitled to claim interest from the date of deposit till its realization. Therefore, I hold that impugned order is not sustainable in the eyes of law granting 10% of interest to the appellant. Considering it is a pre-deposit but the appellant is entitled to claim interest on the said amount as the said amount has been paid under protest from its payment till its realization @12 % p.a.
When any amount is paid under protest, it is neither predeposit nor service tax; it is only a deposit made by the appellant and the said amount found not to be payable, if retained by the Revenue would be without any authority of law. The appellant is entitled to claim interest from the date of deposit till its realization.
FULL TEXT OF THE CESTAT CHANDIGARH ORDER
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