2014 (12) TMI 1309 - HC - Service Tax

Assistant Commissioner ordered to expedite service tax refund process, subject to Tribunal stay order

The court directed the Assistant Commissioner of Service Tax to complete the verification process of relevant documents and sanction the refund within ... Sanction of refund - refund under Section 11B of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994 - verification of relevant documents prior to sanction of refund - effect of appellate stay on enforcement of order - judicial direction to execute appellate orderSanction of refund - verification of relevant documents prior to sanction of refund - effect of appellate stay on enforcement of order - Direction to the Assistant Commissioner to complete verification and sanction the refund allowed by the Commissioner (Appeals). - HELD THAT: - The Commissioner of Central Excise (Appeals) allowed the petitioner's appeal by order dated 29.01.2014 and directed the competent authority to sanction the refund after verifying the relevant documents. The Court noted that verification had not been completed despite that appellate direction and that a further appeal to the Tribunal was pending. Exercising writ jurisdiction the Court directed the Assistant Commissioner of Service Tax to complete the verification of the relevant documents and to sanction the refund claim within four weeks from the date of the order, subject to there being no stay granted by the Tribunal. The Court did not order payment of interest on the delayed refund and conditioned enforcement of its direction on the absence of an appellate stay.The Assistant Commissioner of Service Tax shall complete verification and sanction the refund within four weeks, provided no stay order is in force from the Tribunal.Final Conclusion: Writ petition disposed directing the Assistant Commissioner to verify and sanction the refund allowed by the Commissioner (Appeals) within four weeks, conditional on there being no stay by the Tribunal; interlocutory exemption application allowed. Issues:1. Direction sought for sanctioning a refund by respondent No.2.2. Direction sought for payment of interest on the refund amount.3. Delay in sanctioning the refund.4. Order-in-Original rejection by the Assistant Commissioner.5. Appeal allowed by the Commissioner of Central Excise (Appeals).6. Pending appeal before the Central Excise and Service Tax Appellate Tribunal.Analysis:1. The petitioner filed a writ petition seeking a direction for respondent No.2 to sanction a refund of Rs. 11,25,05,830 as allowed by the Commissioner of Central Excise (Appeals) through an order dated 29.01.2014. The petitioner also requested a direction for payment of interest on the refund amount due to the delay in sanctioning it.2. The order in appeal dated 29.01.2014 favored the petitioner, with the directive for the Competent Authority of Service Tax to sanction the refund claim after verifying the relevant documents. Despite the order, the refund had not been granted, leading to the petitioner's request for interest payment on the delayed amount.3. The delay in sanctioning the refund was acknowledged, with the petitioner highlighting the non-completion of the verification process even after a considerable period since the order in appeal. The respondents mentioned the pendency of an appeal before the Central Excise and Service Tax Appellate Tribunal, contributing to the delay.4. The appeal arose from the rejection of the petitioner's refund application under Section 11B of the Central Excise Act, 1944, read with Section 83 of the Finance Act, 1994, in the Order-in-Original No.68/2013-R dated 11.04.2013 by the Assistant Commissioner, Service Tax, Division-II, CGO Complex, Lodhi Road, New Delhi.5. The Commissioner of Central Excise (Appeals) allowed the petitioner's appeal through the order dated 29.01.2014, directing the Competent Authority of Service Tax to sanction the refund after verifying the necessary documents. However, the delay in implementing this directive led to the writ petition seeking intervention for prompt action.6. The judgment disposed of the writ petition by instructing the Assistant Commissioner of Service Tax to complete the verification process of relevant documents and sanction the refund within four weeks, provided there was no stay order from the Tribunal. The decision aimed to expedite the refund process in light of the pending appeal before the Central Excise and Service Tax Appellate Tribunal.