2026-VIL-1778-CESTAT-DEL-ST
  1. Home
  2. 2026-VIL-1778-CESTAT-DEL-ST

SERVICE TAX CESTAT Cases

Service Tax - Refund of tax with interest - Reference to Larger Bench on rate and commencement of interest under Sections 11B and 11BB of the Central Excise Act, 1944 - Appellants, claiming interest on refund of amounts deposited during investigation, relied on decisions awarding interest at 12% from the date of deposit, while the Revenue relied on a recent decision of a coordinate Bench allowing interest only at the notified rate of 6% only after expiry of three months from the receipt of the refund application - Whether interest on refund is payable at 12% or at the notified rate of 6%, and whether it runs from the date of deposit or after three months from the date of receipt of the refund application - HELD - Section 11BB provides for interest on delayed refund only after expiry of three months from the date of receipt of the refund application, at the rate fixed by notification, which is 6%. Division Benches of the Tribunal have taken contrary views, some awarding interest strictly per the statute and others awarding 6% to 12% from the date of deposit contrary to the express statutory provisions - The Supreme Court and High Courts have allowed interest at 6% as provided in the statute, and where relief was otherwise granted by them, it was in writ jurisdiction on the facts of those cases. The Tribunal, being a creature of statute, derives its powers from the statute and does not exercise the constitutional powers of a High Court or the Supreme Court to go beyond the statute - Since the matter has been decided contrarily by two Benches of higher strength, the controversy requires resolution by a still larger Bench on the issue of refund of self-assessed voluntary payments and involuntary deposits, covering the applicability of Section 11B and the law of limitation, availability of interest under Section 11BB where refund is claimed beyond Section 11B, the relevant date for interest, the applicable rate, the distinction between voluntary and involuntary deposits, the power of the Tribunal to apply equity beyond the statute, and the grant of interest under the Tribunal’s procedural rules - Issues referred to the President for constitution of a Larger Bench – Ordered accordingly
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?