2014 (12) TMI 1309 - HC - Service Tax

Direction to grant refund which has been allowed by the Commissioner of Central Excise (Appeals) by virtue of his order dated 29.01.2014 - interest on delayed refund - Held that - order was passed on 29.01.2014. Till date the verification process has not been completed. The petitioner had written to the respondents for granting the refund yet that has not been done - we are disposing of this writ petition with the direction that the concerned Assistant Commissioner of Service Tax shall complete the verification of the relevant documents and sanction the refund claimed by the petitioner within a period of four weeks from today provided there is no stay order granted by the said Tribunal - petition disposed off.

Summary

Issues:
1. Direction sought for sanctioning a refund by respondent No.2.
2. Direction sought for payment of interest on the refund amount.
3. Delay in sanctioning the refund.
4. Order-in-Original rejection by the Assistant Commissioner.
5. Appeal allowed by the Commissioner of Central Excise (Appeals).
6. Pending appeal before the Central Excise and Service Tax Appellate Tribunal.

Analysis:
1. The petitioner filed a writ petition seeking a direction for respondent No.2 to sanction a refund of Rs. 11,25,05,830 as allowed by the Commissioner of Central Excise (Appeals) through an order dated 29.01.2014. The petitioner also requested a direction for payment of interest on the refund amount due to the delay in sanctioning it.

2. The order in appeal dated 29.01.2014 favored the petitioner, with the directive for the Competent Authority of Service Tax to sanction the refund claim after verifying the relevant documents. Despite the order, the refund had not been granted, leading to the petitioner's request for interest payment on the delayed amount.

3. The delay in sanctioning the refund was acknowledged, with the petitioner highlighting the non-completion of the verification process even after a considerable period since the order in appeal. The respondents mentioned the pendency of an appeal before the Central Excise and Service Tax Appellate Tribunal, contributing to the delay.

4. The appeal arose from the rejection of the petitioner's refund application under Section 11B of the Central Excise Act, 1944, read with Section 83 of the Finance Act, 1994, in the Order-in-Original No.68/2013-R dated 11.04.2013 by the Assistant Commissioner, Service Tax, Division-II, CGO Complex, Lodhi Road, New Delhi.

5. The Commissioner of Central Excise (Appeals) allowed the petitioner's appeal through the order dated 29.01.2014, directing the Competent Authority of Service Tax to sanction the refund after verifying the necessary documents. However, the delay in implementing this directive led to the writ petition seeking intervention for prompt action.

6. The judgment disposed of the writ petition by instructing the Assistant Commissioner of Service Tax to complete the verification process of relevant documents and sanction the refund within four weeks, provided there was no stay order from the Tribunal. The decision aimed to expedite the refund process in light of the pending appeal before the Central Excise and Service Tax Appellate Tribunal.