𝗖𝗘𝗦𝗧𝗔𝗧 𝗞𝗼𝗹𝗸𝗮𝘁𝗮 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗣𝗿𝗲-𝗗𝗲𝗽𝗼𝘀𝗶𝘁 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 📢 The bench of CESTAT Kolkata stated:

Amount deposited during investigation and/or pending litigation is ipso facto pre-deposit, and interest is payable on such amount from the date of deposit till the date of refund. Interest @12% allowed on 7.5% of amount paid under protest. Appeal allowed.

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s Brahmaputra Cracker and Polymer Limited 𝗜𝘀𝘀𝘂𝗲: Entitlement to claim interest under Section 35FF of the Central Excise Act, 1944, on the amount paid under protest.

𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: Entire service tax demand deposited on 28.12.2018 under protest. Tribunal set aside the demand. Refund claimed with interest on 03.06.2022. Principal refunded, no interest paid.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The appellant is entitled to 12% interest per annum on 7.5% of the service tax demand deposited (Rs. 7,90,08,905) from 28.12.2018 to 01.09.2022.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗣𝗮𝗿𝘁𝗶𝗲𝘀: M/s Brahmaputra Cracker and Polymer Limited Vs Commissioner of CGST & Excise, Dibrugarh 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 25 April 2024 𝗖𝗮𝘀𝗲 𝗡𝗼: ST/85678/2023-CU(DB)

📜 This ruling confirms that the appellant is entitled to interest at 12% per annum on 7.5% of the pre-deposited amount from the date of deposit until the date of refund. #CESTAT #ServiceTax #LegalUpdate #arr4nirc