2015 (2) TMI 1019 - AT - Service Tax

Refund of CENVAT Credit - Held that - Interest has been granted vide Order-in-Original dated 30.12.2014, wherein the interest of ₹ 4,37,95,262/- has been granted against the claim of the appellant for rebate of Service Tax of ₹ 5,45,77,651/-. It appears from the Order-in-Original dated 30.12.2014 that the interest has been allowed from the date when C.A certificate (certifying utilization of CENVAT Credit) was filed. - appellant made prayer for compliance of order by the Revenue. We note the compliance reported by the Revenue in terms of order of this Tribunal. Thus, the miscellaneous application is disposed of. The assessee/appellant may seek/resort to remedy, against the Order-in-Original dated 30.12.2014, in accordance with law. - Revenue is in appeal before the Hon'ble Supreme Court in Civil Appeal no. 38259 of 2014 against final order dated 21.08.2014 and if the Revenue succeeds, the appellant shall be bound to refund the amount to the Revenue along with interest - application disposed of.

Summary

Issues: Compliance of Tribunal orders, grant of refund and interest, appeal to the Supreme Court

Compliance of Tribunal Orders:
The judgment revolves around the compliance of earlier orders of the Tribunal regarding the refund of CENVAT credit along with interest to the assessee. The Tribunal had initially dismissed the stay applications of the Revenue against the order of the Commissioner(Appeals) and directed the Revenue to grant the refund to the assessee within specific timeframes. Despite some delays and miscellaneous applications filed by the Revenue seeking more time, the Tribunal ensured that the refund was granted as per the undertaking given by the Revenue. The compliance reported by the Revenue was noted, and the miscellaneous application was disposed of, allowing the appellant to seek further legal remedies if necessary.

Grant of Refund and Interest:
The interest amount was finally granted to the appellant against the claim for rebate of Service Tax, albeit with a discrepancy highlighted by the appellant regarding the calculation from the date of filing the C.A certificate. The appellant pointed out that the interest granted was against the rules. However, the Tribunal observed the compliance by the Revenue and disposed of the miscellaneous application. The appellant was advised to resort to legal remedies against the Order-in-Original dated 30.12.2014 if deemed necessary.

Appeal to the Supreme Court:
The learned AR informed the Tribunal that the Revenue had appealed to the Hon'ble Supreme Court against the final order dated 21.08.2014. It was mentioned that if the Revenue succeeded in the appeal, the appellant would be required to refund the amount along with interest. The Tribunal did not pass any specific direction in this regard, except acknowledging the prayer of the Revenue. The judgment concluded without any further directives, leaving the matter open for the pending appeal before the Supreme Court.

This comprehensive analysis of the judgment highlights the key issues of compliance with Tribunal orders, the grant of refund and interest, and the potential implications of the appeal to the Supreme Court, providing a detailed overview of the legal proceedings and decisions made by the Tribunal in this case.