Interest on ST Payment - After CESTAT Appeal Order

[Arunachalam M]

Dear Experts,

Our Firm had contested the appeal in CESTAT against the order of the Commissioner (Appeals) and the Order was pronounced in favour of assessee and set aside the penalty and directed to pay some demand, for this appeal we have made pre-deposit and Bank Guarantee for the disputed tax payment.

My Query is Whether we have to pay Interest from the due date upto the date of Orders passed, or till the date of pre-deposit made, why because the demand amount is not beyond the value of pre-deposit already made.

For clear picture the following is the relevant date:

Due Date of ST Payment: 05.03.2009

Pre Deposit Made : 08/2015 & 07/2017

Order Passed by CESTAT: 06/2018

No. of Days Delay upto pre Deposit: Around 2300 Days

No. of Days Delay upto CESTAT Order: Around 3400 Days

I request the experts to kindly clarify the same.

Thanks in Advance.

AI Summary

Interest Payable from Due Date to Pre-Deposit Date; No Interest Post Pre-Deposit per 2014 CESTAT Circular A firm contested an appeal in CESTAT, which ruled in favor of the assessee, setting aside penalties but requiring payment of a demand. The firm had made a pre-deposit and bank guarantee for the disputed tax. The query was whether interest should be paid from the due date until the CESTAT order or just until the pre-deposit, given the demand amount didn't exceed the pre-deposit. Experts advised that interest is payable from the due date to the pre-deposit date. A 2014 CESTAT circular allows pre-deposit through the Cenvat account, implying no interest is needed from pre-deposit to order date.