The High Court of Delhi, while issuing the writ of Mandamus, directed the Assistant Commissioner, GST to refund the amount with interest @6% per annum on or before July 15, 2020. However, if the said amount is not refunded by 15th July 2020, the rate of interest with effect from 1st August 2020 shall stand enhanced to 12% per annum.
The officers of the Service Tax Commissionerate conducted an audit or investigation and a deposit of Rs. 2,38,00,000/- was made by the petitioner on 27th October 2006, under protest, under pressure from the officers during the audit/investigation of the service tax records, as the officers insisted on the deposit by the petitioner, even without issuing any notice to show cause to the petitioner.
The Service Tax Department issued a show-cause notice to the petitioner, demanding service tax of Rs.4,66,39,061/- for the period, admitting that the petitioner there out of had already deposited Rs.2,38,00,000/- under protest.
The Commissioner (Adjudication) Service Tax passed the order in respect of the show cause notice, confirming the demand with interest and penalty and appropriated the amount of Rs.2,38,00,000/- aforesaid towards the same.
The petitioner preferred an appeal before the CESTAT along with an application for interim stay; the Tribunal by order allowed the stay application, by waiving the pre-deposit of the balance amount owing to deposit by the petitioner.
The division bench consisting of Justice Rajiv Sahai Endlaw and Asha Menon while issuing the writ of Mandamus, directed the Assistant Commissioner, GST to refund the amount with interest @6% per annum on or before July 15, 2020. However, if the said amount is not refunded by 15th July 2020, the rate of interest with effect from 1st August 2020 shall stand enhanced to 12% per annum.
“However, once the respondents are not found entitled to the monies of the petitioner and/or are found to be unjustifiably retaining the same, the said argument would not entitle the respondents to appropriate what is not due to them,” the court noted.
“The respondents having however indulged in frivolous litigation, are burdened with costs of Rs.25,000/- payable to the petitioner along with the amounts with respect whereto mandamus has been issued,” the court held.
Subscribe Taxscan Premium to view the Judgment
