Service Tax
TRT-2025-
Cestat New Delhi
Date:-14-11-22
In:-
Issue Favourable to Tax Payer ?:-
Order date – 14 November 2022
Facts –
- The Appellant, M/s. Premium Real Estate Developers, was issued show cause notice dated 22.04.2010, whereby service tax demand was proposed of Rs.1,55,10,433/-, the said proposed demand was confirmed along with penalty.
- The appellant filed an appeal and made pre-deposit on 2.2.2015 of Rs.38,57,636/-. Accordingly the Tribunal allowed the appeal which set aside the demand and penalty. On request of refund of pre-deposit the Adjudicating Authority on 5.3.2020, granted refund of the principal plus interest @6% p.a. from the date of deposit.
- Being aggrieved revenue filed an appeal and the Commissioner (Appeals) directed the Adjudicating Authority to recalculate the interest.
- Aggrieve appellant had filed an appeal.
Issue –
- Whether the interest on pre-deposit is calculated as per the provision of Section 35FF?
Order –
- The Tribunal finds that the provision of Section 35 FF provides for grant of interest from the date of deposit till the date of grant of refund.
- Tribunal allowed the interest @12% per annum, following the ruling of the Division Bench in the case of Parle Agro Ltd.
- The Adjudicating Authority was directed to grant differential interest from the date of deposit till the date of refund within a period of 60 days from the date of receipt of copy of this order.
- Accordingly, the appeal is allowed. The impugned order-in-appeal is set aside.
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