2019 (7) TMI 499 - AT - Service Tax

Demand of Interest on refund - Section 11 BB of the Central Excise Act - applicability of condition no.2(j) under Notification no.17/2009-ST dated 07.07.2009 - HELD THAT - The requirement of Condition No.2(j) of the Notification no.17/2009-ST was applicable to the appellant/assesse, as the said notification was issued by way of substitution of the earlier notification no.41/2007 and accordingly, the contention of the appellant that the condition no.2(j) is not applicable to them, is rejected. There is no delay on the part of the Revenue in granting the refund - this appeal for interest on refund is rejected - Appeal dismissed - decided against appellant.

Summary

Issues: Grant of interest on refund under Section 11 BB of the Central Excise Act, read with provisions of Service Tax.

The appellant, an exporter, claimed a refund of service tax for specified services used in relation to the export of goods. The claim included services like transport of goods by road, Customs House Agent Service, Business Auxiliary Service, and port services. The Adjudicating Authority rejected the refund claims, leading to litigation. In a previous round, the Tribunal held that the appellant was entitled to a refund on transportation of metal containers and remanded the case for compliance verification. The Adjudicating Authority, post remand, allowed the refund but did not address the interest under Section 11 BB of the Central Excise Act. The Commissioner (Appeals) denied interest, stating no delay in granting the refund. The appellant appealed, arguing that Condition No. 2(j) of Notification no.17/2009-ST was not applicable as the claim was filed within the stipulated period. The Tribunal held that Condition No. 2(j) applied, rejecting the appellant's argument and dismissing the appeal for interest on the refund.

The judgment primarily revolves around the entitlement to interest on a refund under Section 11 BB of the Central Excise Act in the context of a service tax refund claim by an exporter. It delves into the specifics of the services claimed for refund, the previous Tribunal decision, compliance requirements under Notification no.17/2009, and the denial of interest by the Adjudicating Authority and Commissioner (Appeals). The key issue is the applicability of Condition No. 2(j) of the notification to the appellant's refund claim and whether there was a delay in granting the refund. The Tribunal's decision to reject the appeal for interest rests on the interpretation of the notification's conditions and the absence of delay in processing the refund.