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TMI Blog2017 (6) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... ere it was held that liability of the revenue to pay interest u/s 11BB of the Act commences from the date of expiry of three months from the date of receipt of application for refund under Section 11B(1) of the Act and not on the expiry of the said period from the date on which order of refund is made - the appellant is eligible for the interest in accordance with law in respect of the delayed refunds sanctioned to them. Appeal allowed - decided in favor of appellant. - ST/22351 to 22354/2014-SM - Final Order No. 30707 to 30711/2017 - Dated:- 7-6-2017 - Mr. M.V. Ravindran, Member (Judicial) Shri Prakash Shah, Advocate for the Appellant Shri Nagaraj Naik, Deputy Commissioner (AR) for the Respondent ORDER All these ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claims in the first round. Aggrieved by the said order, appellant preferred an appeal before the first appellate authority against the rejection of refund claims (partially) and also denial of interest. The first appellate authority did not agree with the contentions raised and rejected the appeals as also the demand for interest. 4. During the pendency of the appeals, appellants preferred miscellaneous applications which were disposed of by this Bench by Misc. Order No.30053-30057/2017 dt. 01/05/2017 vide which the applications for raising additional grounds in respect of non-granting of interest were allowed. 5. This matter was heard at length on 11/05/2017 and on that day both sides were granted time for filing additional writt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xxiv. Management or Business Consultant Service xxv. General Insurance Service xxvi. Business Support Service xxvii. Cleaning Activity Service xxviii. Consulting Engineer Service 7. On perusal of the above referred services, it is seen that all these services have always been held by the lower authorities as not used in or in relation to providing of output services and do not fall under the definition of input services as per Rule 2(l) of the CENVAT Credit Rules 2004. All these arguments have been negated by the Tribunal in various cases and by this Bench in the case of Alliance Global Services India (P) Ltd. Vs. CCE ST, Hyderabad-IV [2016(44) STR 113 (Tri. Hyd.)], Nuware Systems Pvt. Ltd. Vs. CST, Bangalore [2015(39) STR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant of the service tax paid on the above input services, as unsustainable. The impugned orders are set aside and the appeals are allowed. 8. Addressing the issue as to the demand of the appellant regarding non-payment of interest on the delayed refunds sanctioned by the lower authorities when the matter was remanded back to them. From the records, this court finds strong force in the contentions that the adjudicating authority in the first round of litigation has rejected the refund claims without assigning any reason and the same was subsequently allowed (Partially) on being remanded by the first appellate authority. It is on record that the appellant was sanctioned the refund belatedly. The Hon ble Apex Court in the case of Ranba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount claimed is still not refunded. Thus, the only interpretation of Section 11BB that can be arrived at is that interest under the said Section becomes payable on the expiry of a period of three months from the date of receipt of the application under sub-section (1) of Section 11B of the Act and that the said Explanation does not have any bearing or connection with the date from which interest under Section 11BB of the Act becomes payable. 10. . 11. . 12. . 13 . We, thus find substance in the contention of learned counsel for the assessee that in fact the issue stands concluded by the decision of this Court in U.P. Twiga Fiber Glass Ltd. (supra). In the said case, while dismissing the special leave petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in Shreeji Colour Chem Industries (supra), relied upon by the Delhi High Court. It is evident from a bare reading of the decision that insofar as the reckoning of the period for the purpose of payment of interest under Section 11BB of the Act is concerned, emphasis has been laid on the date of receipt of application for refund. In that case, having noted that application by the assessee requesting for refund, was filed before the Assistant Commissioner on 12th January 2004, the Court directed payment of Statutory interest under the said Section from 12th April 2004 i.e. after the expiry of a period of three months from the date of receipt of the application. Thus, the said decision is of no avail to the revenue. 15 . In view of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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