Case Law Details
Impressive Management Solutions Pvt. Ltd. Vs C.G. & S.T. (CESTAT Chandigarh)
Conclusion: Assessee was entitled to claim interest on delayed refund must be payable from the date of deposit till the date of payment.
Held: Assessee-company was engaged in providing services namely recovery agents services and was under a bonafide belief that the recovery agents services were not liable to discharge service tax as the same was liable to tax on reverse charge basis. The department undertook an enquiry on the basis of Form 26AS and came to the conclusion that the company had short paid certain amount to service tax. After due process the Order-in-Original confirmed the demand of Rs. 49,94,022/- and penalty under section 78 and section 77 was also imposed. On appeal before the Tribunal against the order confirming the demand of service tax and imposition of penalty. The Hon’ble Tribunal allowed the appeal of the company. In consequence to the order, assessee-company requested the department to refund an amount of Rs. 22,81,472/- which was beyond the limitation period. The refund was sanctioned but no interest was given on the refund. Assessee filed an appeal against the order for non sanctioning of interest but the same was rejected vide Order-in-Appeal dated 22.07.2022, hence the present appeal. It was held that following the decision in case of Commissioner of Central Excise, Panchkula Vs. Ms. Riba Textiles Ltd., assessee was entitled to claim interest on delayed refund from the date of deposit till the date of payment at the rate of 12% per annum.
FULL TEXT OF THE CESTAT CHANDIGARH ORDER
The present appeal is directed against the impugned order dated 22.07.2022 passed by the Commissioner Appeal whereby the appeal of the appellant was rejected by holding that the appellant is not entitled for interest on the refund amount.
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