Service Tax
TRT-2025-
Cestat Ahmedabad
Date:-09-02-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 09 February 2023
Parties: Ishwar Construction Company Vs C.C.E.-Kutch (Gandhidham)
Facts –
- The Appellant, Ishwar Construction Company, was alleged for non-payment of service tax during the investigation, and the appellant during such inquiry and investigation deposited sum of Rs. 25 Lacs.
- On an appeal filed by the appellant, the order was passed in favour of the appellant and amount was refunded along with interest by Adjudicating Authority, but on an appeal preferred by the revenue the interest was denied by Learned Commissioner
Issue –
- Whether the appellant is entitled to interest on refund?
Order –
- The Tribunal held that Adjudicating Authority allowed the interest @ 6% on 7.5% of the total service tax amount, relying upon the CBEC Circular No. 984/8/2014- CX dated 16.09.2014, which was issued with reference to the amended Section 35F and Section 35FF in the Finance Budget, 2014.
- The appellant have paid Rs. 25 Lacs Suo moto during the investigation of the case way back in January and February, 2007. Therefore, the amended provision of 35F /35FF prevailing in 2014 is not applicable in the case of any deposit made prior to enactment of Finance Act, 2014. The Circular was also issued with reference to the new provision of 35F/35FF therefore the Adjudicating Authority has gravely erred on applying said Circular.
- Learned Commissioner has correctly held that the appellant is not liable for interest of Rs. 5,55,093/- in terms of Section 35F.
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