TaxTMI 
TaxTMI 
2026 (1) TMI 654
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....VII, Ahmedabad North and rejected the appeal. 2. The facts of the case, in brief, are that M/s. Patel Labour Contractors Pvt. Limited were holding service tax registration. The service tax department conducted audit during 2005-06 to 2009-10 of the appellant and they found that appellant have received amount from their clients for providing services but not declared it in their ST-3 returns filed during the material time. Therefore, Show Cause Notice dated 19.05.2011 was issued to the appellant demanding Service Tax of Rs. 70,21,924/-. The Commissioner Service Tax, Ahmedabad vide order dated 28.09.2012 confirmed demand of Service Tax amounting to RS. 70,21,924/- for the period from 2005-06 to 2009-10 under the provisions of Section 73(2)....
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....rned Commissioner (Appeals) and learned Commissioner (Appeals) vide impugned order dated 26.08.2022, rejected the appeal filed by the appellant. Feeling aggrieved from this impugned order, the appellant has filed the present appeal before this Tribunal. 3. Learned Chartered Accountant for the appellant, at the outset submits that the issue is no more res-integra and is settled by various judgments. He submits that in the case of Sandvik Asia Limited vs. Commissioner of Income Tax & Ors. reported in 2006 (1) TMI 55 - Supreme Court, Hon'ble Apex Court has observed that wherever any demand of duty has not been paid by any assessee at the appropriate rate and date, the same attracts charging of interest on such amount from such date. Suc....
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....only at the instance and at the intervention of this Court in Civil Appeal No. 1887 of 1992 dated 30-4-1997. Interest on delayed payment of refund was not paid to the appellant on 27-3-1981 and 30-4-1986 due to the erroneous view that had been taken by the officials of the respondents. Interest on refund was granted to the appellant after a substantial lapse of time and hence it should be entitled to compensation for this period of delay. The High Court has failed to appreciate that while charging interest from the assessees, the Department first adjusts the amount paid towards interest so that the principal amount of tax payable remain outstanding and they are entitled to charge interest till the entire outstanding is paid. But when it com....
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....of its refund, therefore, the appellants, in the instant case, are entitled to claim interest on delayed payment of amount from the date of its deposition till its realization. 5.2 The interest on the said delayed refund is also payable at the rate of 12% as held by Hon'ble Kerala High Court in the case of Sony Pictures Networks India Pvt. Limited - 2017 (353) ELT 179 (Kerala). The relevant para of the judgment is reproduced below:- "14. Now, the sole question remains to be considered is what is the nature of interest that the petitioner is entitled to get. As discussed above in the judgment Commissioner of Central Excise v. ITC (supra), the Apex Court confined the interest to 12% and further held that any judgment/decision ....