V.Peter vs. Commissioner Of Central GST And Central Excise
Held
The High Court affirmed the CESTAT's decision, holding that interest on the refunded service tax is payable only from the date of the appellate order (21.11.2013) which first declared the appellant not liable to pay service tax, and not from the date the service tax was originally paid into the government account.
Facts
The appellant, a commission agent, paid service tax which was later declared exempt by an appellate authority. After a protracted process, his refund application was sanctioned, but a dispute arose regarding the period for which interest on the refunded amount should be paid. The appellant sought interest from the date of tax payment, while the department and CESTAT determined a later commencement date.
Key Issues
The key legal issue was the correct commencement date for calculating interest on a refunded service tax amount. Specifically, whether interest should accrue from the date of actual tax payment or from the date of the appellate order declaring non-liability.
Sections Cited
Section 11B of the Central Excise Act 1944, Section 11BB of the Central Excise Act 1944
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR.JUSTICE BASANT BALAJI WEDNESDAY, THE 28TH DAY OF SEPTEMBER 2022 / 6TH ASWINA, 1944 C.E.APPEAL NO. 2 OF 2022 ST 20489/2021 OF CUSTOMS,EXCISE&SERVICE TAX APP.TRIBUNAL,BANGALORE APPELLANT/S: V.PETER AGED 80 YEARS PROPRIETOR, FAIRDEAL AGENCIES, VISWAMANDIRAM, CANTONMENT SOUTH, KOLLAM-691 001 BY ADVS. K.SASIKUMAR S.ARAVIND P.S.RAGHUKUMAR RESPONDENT/S: COMMISSIONER OF CENTRAL GST AND CENTRAL EXCISE GST BHAVAN, PRESS CLUB ROAD, THIRUVANANTHAPURAM- 695 001 OTHER PRESENT: ADV . ANJANA PRADEEP FOR SR SC SREELAL WARRIER THIS CENTRAL EXICISE APPEAL HAVING COME UP FOR ADMISSION ON 28.09.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
C.E.APPEAL NO. 2 OF 2022 -2- S.V.BHATTI & BASANT BALAJI, JJ. - - - - - - - - - - - - - - -- - - -- - - - - - - - - - -- - - - - - - - - C.E.APPEAL NO. 2 OF 2022 - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - JUDGMENT (Dated this the 28th day of September 2022) Basant Balaji J., Annexure A1 order of the CESTAT dated 25.3.2022 is impugned in this appeal.
The judgment continues below.
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