Tribunal Upheld Interest Sanction from Complete Application Date

The Tribunal upheld the order, stating that interest on the delayed refund was rightly sanctioned from the date the application was considered complete on 14.07.2018. The appellant's appeal was dismissed based on compliance with section 11B of the Central Excise Act and previous Mumbai Tribunal precedent. The decision was pronounced on 06-08-2021.

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Issues:
Refund claim of service tax, interest on delayed refund, compliance with section 11B of Central Excise Act.

Refund Claim of Service Tax:
The appellant filed a refund claim of service tax amounting to Rs. 21,89,490 on 10.11.2017 due to an arithmetical mistake. The Original Adjudicating Authority sanctioned the refund but did not provide interest on delayed refund. The appellant appealed before the Commissioner (Appeals) who directed the Authority to sanction interest. Subsequently, interest of Rs. 30,593 was sanctioned. However, the interest was not provided from the date of the application, leading to the current appeal before the Tribunal.

Interest on Delayed Refund:
The appellant argued that interest should have been sanctioned from the date of the application as per section 11B of the Central Excise Act. The department contended that the application was incomplete, and the deficiency was rectified by the appellant only on 14.07.2018. The Tribunal observed that the application was complete and proper only on 14.07.2018, and hence interest was rightly sanctioned from that date. The Tribunal upheld the decision of the Commissioner (Appeals) based on the Mumbai Tribunal's ruling in a similar case.

Compliance with Section 11B of Central Excise Act:
The Tribunal noted that the appellant's application for refund was initially returned due to deficiencies, which were rectified only on 14.07.2018. Therefore, the application was considered filed on 14.07.2018 in compliance with section 11B of the Central Excise Act. The Tribunal found no error in the decision of the Commissioner (Appeals) and dismissed the appeal, relying on precedent from the Mumbai Tribunal.

In conclusion, the Tribunal upheld the order under challenge, stating that the interest on the delayed refund was rightly sanctioned from the date the application was considered complete. The appellant's appeal was dismissed, and the decision was pronounced in open court on 06-08-2021.

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