2017 (9) TMI 795 - HC - Service Tax

Interest on refund - advance payment of service tax - Held that - the appellant is not relying on any statutory provision entitling the appellant for interest on the amount refunded - also the payment made by the appellant pending adjudication was a voluntary advance payment and that taking note of the advance payment made by the appellant, in the adjudication order, the adjudication authority has not levied any penalty or fine on the appellant - interest not allowed - appeal dismissed - decided against appellant.

Summary

Issues:
Claim for interest on refunded sum.

Analysis:
The appeal in this case stemmed from the Customs, Excise & Service Tax Appellate Tribunal's decision rejecting the appellant's claim for interest on the refunded amount. The appellant voluntarily paid a sum towards service tax during adjudication, and upon confirmation of the service tax amount, filed a refund application. The appellant sought interest on the refunded sum from the date of remittance to the date of refund. However, the claim for interest was rejected by the adjudication order, which was upheld by the first appellate authority and the Tribunal.

During the proceedings, it was observed that the appellant did not rely on any statutory provision supporting their entitlement to interest on the refunded amount. Additionally, it was noted in the adjudication order that the payment made by the appellant during adjudication was a voluntary advance payment. The adjudication authority, taking into account the advance payment, did not impose any penalty or fine on the appellant. Consequently, the court found that the appellant's appeal lacked legal grounds for claiming interest on the refunded sum.

In conclusion, the court dismissed the appeal, affirming the decision of the lower authorities. The judgment emphasized the absence of statutory provisions supporting the appellant's claim for interest on the refunded amount, along with the voluntary nature of the advance payment made during adjudication, which precluded the imposition of penalties.