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Case Law Details

Case Name : Sourav Ganguly Vs Commissioner of Service Tax (CESTAT Kolkata)
Appeal Number : Service Tax Appeal No. 77117 of 2019
Date of Judgement/Order : 14/12/2020
Related Assessment Year :
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Sourav Ganguly Vs Commissioner of Service Tax (CESTAT Kolkata)

It transpires from the records that after the passing of the order dated November 12, 2012 by the Commissioner, the appellant deposited the confirmed demand of Rs. 1,51,66,500/- on February 26, 2014 and subsequently also deposited an amount of Rs. 50 lacs on March 21/26, 2014 in compliance of an interim order dated March 10, 2014 passed by the Calcutta High Court, in the Writ Petition filed by the appellant to assail the order passed by the Commissioner. The said Writ Petition filed by the appellant was allowed by a learned Judge of the High Court on June 30, 2016 and the amount deposited was directed to be refunded with interest at the rate of ten percent per annum from the date of deposit till the date of payment. The Department however, filed an appeal before a Division Bench of the Calcutta High Court against the order of the learned Judge and by an interim order dated February 16, 2017, the Division Bench directed that the amount of Rs. 2,01,66,500/- (1,51,66,500+50,00,000/-) should to be deposited by the Department with the Registrar General of the High Court, which amount was to be invested in an interest bearing fixed deposit. The Division Bench, by judgment and order dated August 14, 2019, allowed the appeal filed by the Department and directed that the amount deposited by the Department with the Registrar General of the High Court shall be returned to the appellant with accrued interest as on the date of refund.

The contention of the appellant is that no interest has been paid to the appellant from the date of deposit of the amount of Rs. 1,51,66,500/- on February 26, 2014 with the Government till the date the said amount was deposited by the Government with the Registrar General of the High Court. Likewise, the appellant has not been paid interest on Rs. 50 lacs from the date it was deposited with the Government on March 21/26, 2014 till the said amount was deposited by the Government with the Registrar General of the High Court. It has, therefore, been urged by learned counsel of the appellant that the appellant should get interest on the amount of Rs. 2,01,66,500/- from the date of deposit with the Government till the said amount was transferred to the Registrar General of the High Court, if it is ultimately held that the appellant is not entitled to pay service tax.

 As the appeal filed by the appellant is being allowed and the demand confirmed by the Commissioner is being set aside, there is no reason why the appellant should not be granted interest on the amount of (Rs. 1,51,66,500 and 50,00,000) deposited with the Government from the date of deposit of the amount upto the date of transfer of the said amount to the Registrar General of the High Court.

 Thus, for all the reasons above, the impugned order dated November 12, 2012 passed by the Commissioner is set aside and the appeal is allowed. The appellant shall also be entitled to interest on the amount of Rs. 1,51,66,500/- and Rs. 50,00,000/- from the date of deposit of the amount with the Government upto the date the amount was transferred to the Registrar General of the Calcutta High Court at the rate of ten percent per annum. This amount shall be paid to the appellant within a period of one month from the date of this order, failing which the appellant would be entitled to get interest at the same rate from the date of this order upto the date of payment of the amount.

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