Service Tax – Cestat Ahmedabad: Amount deposited during investigation is ipso facto pre-deposit and interest is payable on such amount being successful in appeal, from the date of deposit till the date of refund – Appeal allowed [Order attached]
Order Date – 22 December 2022
- The Appellant, Omega Elevators provides service under the category of “Erection, Commissioning or Installation Service.
- The appellant had paid service tax on services rendered during the period from 01.07.2003 to 31.03.2015 during the investigation by the Department. The appellant claimed the refund on succeeding the appeal. The refund was sanctioned but interest on account of delayed refund was not given to the appellant on the ground that there was no delay in sanctioning of refund amount as per Section 11BB of the Central Excise Act, 1944.
- Whether the appellant is eligible for interest on refund on succeeding the appeal?
- The Tribunal held that when any amount paid during the investigation, it is only a pre-deposit made by the appellant. On succeeding in the appeal, the pre-deposit made in connection to the said appeal is liable to be refunded with interest. The order of Tribunal has attained finality.
- In that circumstance, the appellant is entitled to claim interest from the date of deposit till its realization.
- Hence the appeal is allowed.