The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore bench has recently allowed an appeal filed by Astrazeneca India where the Company’s refund for service tax paid to the Department was allowed along with interest.
The appellant-Company is aService Provider registered with the Service Tax department. They filed an application on 17.7.2007 for claiming refund in terms of Rule 5 of CENVAT Credit Rules, 2004 for the year 2006-2007. Thereafter, a show-cause notice dated 27.2.2008 was issued to the appellant proposing to deny the refund. Appellant filed reply to the show-cause notice and the Deputy Commissioner vide Order-in-Original dated 7.7.2008 allowed the refund claim to the extent of Rs.3,85,681/- and rejected the balance refund claim. On appeal, the first appellate authority partially allowed the plea of the appellant.
On second appeal, Judicial Member S S Garg held that the department has erroneously relied upon the GST Circular to reject the refund of CENVAT credit and the said Circular is contrary to the provisions of erstwhile Service Tax Regime and are not binding on the Court.
“In view of the various decisions cited supra, I am ofthe view that the ratio of the said decisions is squarely applicable to the facts of the present case and I set aside the impugned order by allowing refund claims to the appellant,” the Tribunal said.
Regarding the issue of interest, the Tribunal said that “since the issue of interest on delayed refund has been settled by the apex court in the case of Ranbaxy Laboratories Ltd. (supra) wherein Hon’ble Supreme Court has held that interest on delayed refund under Section 11BB is payable on expiry of three months from the date of receipt of applicationunder Section 11B(1) and not from the date of the order of refund or appellate order allowing such refund. Hence, I hold that appellant is entitled for interest as per the apex court decision in the case of Ranbaxy Laboratories Ltd.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
