GST
TRT-2025-
Cestat Ahmedabad
Date:-18-10-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 18 October 2023
Parties: Zydus Life Science Ltd Vs Commissioner of CGST & Central Excise Ahmedabad South
Facts –
- The Appellant, Zydus Life Science Ltd, filed a refund of service tax paid along with interest on remuneration and royalty received from a partnership firm and the refund was sanctioned by the Tribunal, vide Final Order dated 27.04.2021.
- On 04.04.2022, the Appellant filed letter for release of refund of Service Tax paid by them. On 30.05.2022, they were called for personal hearing and Ld. Assistant Commissioner observed that the Appellant are eligible for interest under Section 11BB of Central Excise Act, 1944 from 05.04.2022, which is when the Application dated 04.04.2022 filed by the Appellant was received by the office of Ld. Commissioner.
- Being aggrieve the appellant filed an appeal which partially allowed to the extent of granting of interest from the date of the Order dated 27.04.2021 passed by this Tribunal.
Issue –
- Whether interest on delayed refund is payable after three months from the date of filing of refund application or from the date of order of this Hon’ble Tribunal allowing the refund claim?
Order –
- The Tribunal observed that as soon as the matter was finally decided vide order dated 27.04.2021 the refund matter was settled but the entire proceeding of refund was initiated from filing of refund application by the appellant on the dates of filing their refund applications. Therefore it is not the date of the letter dated 04.04.2022 the date of applications, whereas, the actual date of application is the dates when first time refund applications were filed and as per section 11BB the appellant are entitled for interest on the refund after three months from the date of such applications.
- Further, the contention of the revenue hat the interest is payable from the date of refund Order does not apply in a case where there is no demand but the case is of refund of suo-moto payment of service tax. Accordingly, the appellant is legally entitled for the interest after three months from the date of application for refund made first time. This issue has been considered in various judgments particularly in the Apex Court judgment of Ranbaxy Laboratories Ltd.
- Therefore, it was held that there is absolute no doubt that the appellant is entitled for the interest after three months from the date of refund applications as mentioned in respective refund applications filed first time after suo-moto payment of Service Tax and interest thereon.
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