Refund of pre-deposit

[samir agrawal]

An assessee filed an appeal in Cestat against OIO. A pre-deposit was made in 2013 as a pre condition for staying the order of OIO.

The Cestat has now set aside the OIO and remended the matter to decide afresh.

What is the rate of interest payable by the department on refund of pre deposit of this service tax?

AI Summary

Interest on Pre-Deposit Refund Confirmed at 6% Per Annum Under Section 35FF of Central Excise Act An assessee appealed to CESTAT against an Order-in-Original (OIO) and made a pre-deposit in 2013. CESTAT set aside the OIO and remanded the matter. The query is about the interest rate on the refund of the pre-deposit. One respondent stated that the interest rate is 6% per annum as per Section 35FF of the Central Excise Act, 1944, applicable to service tax via the Finance Act, 1994. Another mentioned a dispute over whether the rate should be 12%. A case from CESTAT Ahmedabad confirmed the 6% rate from the deposit date. Higher interest rates can be penalties imposed by courts.