Service Tax
TRT-2025-
Cestat Kolkata
Date:-25-04-24
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 25 April 2024
Parties: M/s Brahmaputra Cracker an Polymer Limited Vs Commissioner of CGST & Excise, Dibrugarh
Facts –
- The Appellant, M/s Brahmaputra Cracker an Polymer Limited, was served with a show-cause notice which was adjudicated, and the demand was confirmed. The appellant deposited whole of the amount of service tax demanded on 28.12.2018 under protest and communicated the said facts to the respondent.
- On an appeal, the Tribunal set aside the demand confirmed against the appellant. The appellant claimed the refund of the pre-deposit along with interest on 03.06.2022. The amount paid under protest was refunded to the appellant. No interest was paid by the adjudicating authority to the appellant.
Issue –
- Whether the appellant is entitled to claim interest under Section 35FF of the Central Excise Act,1944 on amount paid under protest?
Order –
- The Tribunal observed that the appellant has made the pre-deposit of whole of the demand of service tax although under protest, but the same was not required to be paid by the appellant to file appeal before this Tribunal.
- In that circumstances, the appellant is entitled to claim the interest on 7.5% of the demand of service tax deposited (Rs.7,90,08,905/-) on 28.12.2018 till its realization i.e. 01.09.2022. However, in terms of the decision of this Tribunal in the case of Parle Agro Private Limited, the appellant is entitled for interest at the rate of 12% per annum.
- Hence it was held that the appellant is entitled to interest on 7.5% of Rs.7,90,08,905/- from 28.12.2018 till 01.09.2022 at the rate of 12% per annum.
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