TaxTMI 
TaxTMI 
2021 (3) TMI 421
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....earned Commissioner (Appeals), Kolkata, upholding the rejection of refund claim as adjudicated by the Asst. Commissioner vide Order-in- Original dated 19.05.2015, for the period April 2011 to September 2011. 2. Briefly stated, the facts of the case are that the appellant company is a provider of service to its overseas clients which constitute export of service on which no output service tax is payable. The appellant is availing various input services which is claimed as CENVAT credit under the provisions of CENVAT Credit Rules, 2004 (Credit Rules). Service tax on said input service used for export of service is being claimed as refund under Rule 5 of the said Credit Rules. There is no dispute with regard to the nature of services render....
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.... Department. He submitted copy of the lease agreement and a certificate obtained from the landlord company to support his contentions. For dispute in item No. (ii) he submitted that credit has been denied on 'general insurance services' on the ground that said insurance services relate to premises No. Y-14 and used on shared basis both by the appellant company and the other company PricewaterhouseCoopers Pvt. Ltd.. In respect of dispute in item No. (iii) he submitted that both the authorities below have made a computation error in determining the 'eligible refund amount' by applying the ratio of export turnover to total turnover (incl. domestic turnover) on the credit amount net of amount utilised for payment of output Service Tax on ....
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.... certificate issued by the landlord clearly mentions that they have rendered renting of immovable property services to the appellant in respect of rented premises i.e. South City Pinnacle situated at Plot No. X1-1. In view of the said factual matrix, there is no reason to dispute the receipt of services by the appellant in the absence of any contrary finding. The objection raised by the Department that office at Plot No. Y-14 has also been shared with the other company is not supported by any evidence and hence cannot be accepted merely on presumption basis. On the same count, there is no reason to deny credit on general insurance services availed by the appellant at their office premises i.e. South City Pinnacle. I accordingly allow the cr....
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....ar as the subject of interest is concerned as is referred in point no. (iv) above, I find that the law is amply clear that when there has been a delay in payment of refund amount, the assessee is entitled for interest under Section 11BB. The relevant portion of the observation made by Hon'ble Gujarat High Court in Reliance Insurance Ltd. (Supra) is reproduced below:- 10. Section 11-BB of the Act makes provision for payment of interest from the date immediately after expiry of three months from the date of receipt of the application under sub-section (1) of that section, till the date of refund of such duty at such rate as may be fixed by the Central Government by notification in the Official Gazette subject to the minimum and maxim....
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.... circumstances of the present case, admittedly the refund has been ordered under Rule 5 of the Rules and there was a delay in sanctioning the refund, in the circumstances, the provisions of Section 11BB of the Act would clearly be attracted and as such the Tribunal was justified in holding that the provisions of clause (c) of the proviso to sub-section (2) of Section 11B and consequently Section 11BB of the Act are clearly applicable to the facts of the present case and as such the respondent is entitled to interest on delayed refund of Cenvat Credit as claimed by it. 13. Another aspect of the matter is that when Section 11BB of the Act had newly been inserted by the Finance Act, 1995, the Government of India, Ministry of Finance (....