TaxTMI 
TaxTMI 
2023 (4) TMI 1015
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....ellant is engaged in providing erection, commissioning and installation services, construction of residential complex services and works contract services during the period under consideration. During the period under consideration i.e. 2015-16, the appellant has discharged its liability by depositing service tax of Rs.80,20,869/- on the services provided during the said period. In Union budget, 2016, services provided to Government was exempted vide notification no. 09/2016 dated 1.3.2016 under exemption entry S.No.12A. This exemption was given retrospective effect as per section 102 of the Finance Act, 2016. Accordingly, services provided by the appellant to the Government during the financial year 2015-16 stands exempted. Section 102 of ....
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....grant of interest as per section 11BB of Central Excise Act, 1944. Subsequently, the appellant received refund of Rs.30,20,628/- on 17.12.2020 but without any interest on delayed payment of refund. 5. Heard both the parties and perused the records. 6. Ld.CA appearing for the appellant submitted that as per law the appellant is entitled to claim interest on delayed payment of refund after expiry of 3 months from the date of filing of refund claim. He further submitted that in this case, he has filed refund application on 14.9.2016 whereas the Commissioner (Appeals) has wrongly observed that the appellant has filed refund claim on 23.7.2020. He further submits that the Commissioner (Appeals) has only granted interest on refund for the perio....
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....provisions of section 11B and 11BB of Central Excise Act, 1944 held as under:- 9. It is manifest from the afore-extracted provisions that Section 11BB of the Act comes into play only after an order for refund has been made under Section 11B of the Act. Section 11BB of the Act lays down that in case any duty paid is found refundable and if the duty is not refunded within a period of three months from the date of receipt of the application to be submitted under sub-section (1) of Section 11B of the Act, then the applicant shall be paid interest at such rate, as may be fixed by the Central Government, on expiry of a period of three months from the date of receipt of the application. The Explanation appearing below Proviso to Section 11BB int....
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....1921] 1 K.B. 64 and Ajmera Housing Corporation & Anr. v. Commissioner of Income Tax, (2010) 8 SCC 739]. 11. At this juncture, it would be apposite to extract a Circular dated 1st October 2002, issued by the Central Board of Excise & Customs, New Delhi, wherein referring to its earlier Circular dated 2nd June 1998, whereby a direction was issued to fix responsibility for not disposing of the refund/rebate claims within three months from the date of receipt of application, the Board has reiterated its earlier stand on the applicability of Section 11BB of the Act. Significantly, the Board has stressed that the provisions of Section 11BB of the Act are attracted "automatically" for any refund sanctioned beyond a period of three months. The C....
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....he jurisdictional Central Excise Officers are not required to wait for instructions from any superior officers or to look for instructions in the orders of higher appellate authority for grant of interest. Simultaneously, Board would like to draw attention to Circular No. 398/31/98-CX., dated 2-6-98 [1998 (100) E.L.T. T16] wherein Board has directed that responsibility should be fixed for not disposing of the refund/rebate claims within three months from the date of receipt of application. Accordingly, jurisdictional Commissioners may devise a suitable monitoring mechanism to ensure timely disposal of refund/rebate claims. Whereas all necessary action should be taken to ensure that no interest liability is attracted, should the liability ar....
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....ferred to the Consumer Welfare Fund but the relevant date is to be determined with reference to date of application laying claim to refund. The non-payment of refund to the applicant claimant within three months from the date of such application or in the case governed by proviso to Section 11BB, non-payment within three months from the date of the commencement of Section 11BB brings in the starting point of liability to pay interest, notwithstanding the date on which decision has been rendered by the competent authority as to whether the amount is to be transferred to Welfare Fund or to be paid to the applicant needs no interference." The special leave petition is dismissed. No costs." 14. At this stage, reference may be made to the ....