Case Law Details
Commissioner of Central Goods & Service Tax Vs Dalmia Cement (Bharat) Ltd. (CESTAT Delhi)
Having considered the rival contentions, I hold that once the four companies have become one, by merger, under operation of law w.e.f. 01.01.2015, as per order of the competent Court, the transactions between them during the effective date and the date of order of the competent Court, partake the character of mutuality and hence are no longer taxable by operation of law. Whatever tax is deposited by different companies during the intervening period, ipso facto becomes Revenue deposit. On such Revenue deposit, interest has to be paid in terms of Section 11BB of the Act, from end of three months from the date of refund claim.
FULL TEXT OF THE CESTAT DELHI ORDER
Heard the parties.
2. By virtue of order of NCLT dated 20.04.2018, three companies namely; i) M/s Adhunik Cement Ltd., ii) M/s DCB Power Ventures Ltd., and iii) M/s OCL India Ltd., are merged into M/s Dalmia Cement (Bharat) Limited (the merged company), w.e.f. 01.01.2015. Accordingly, the appellant applied for refund on the service transaction, between the aforementioned companies, and was granted refund of Rs.14,99,680/- + Rs.81,25,805/- totalling Commissioner determined 01.11.2018, being the date on which the order of merger of NCLT was produced before the Adjudicating Authority. Accordingly, he granted interest @ 6% p.a. w.e.f. 01.02.2019 (being three months from 01.11.2018). Being aggrieved, for not allowing appropriate interest, the assessee filed appeal before the Commissioner (Appeals) who vide the impugned order in appeal observed as follows:-
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