The Bombay high court last week described the denial of interest on refund of service tax by the deputy commissioner as “specious” in the case, Shroff United Chemicals Ltd vs Union of India. It asked the revenue authorities to pay interest for the delayed refund. The firm, in anticipation of import of intellectual property services, had obtained service tax registration. It then approached the Reserve Bank for the remittance of funds abroad, for a proposed acquisition of the registration of certain agrochemical products in the U.S. In anticipation of the permission of the Reserve Bank for the remission of funds abroad, it deposited Rs.1.02 crore. However, it did not receive permission on time and therefore it could not acquire the registration. It filed refund claim which was allowed. But the interest on delay was denied. Then the firm moved the high court for interest. The high court allowed the claim and stated that under Section 11BB of the Central Excise Act, the firm was entitled to interest after three months of receiving the application for refund. - www.business-standard.com
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Denial of refunding service tax specious says Bombay high
The Revenue authorities as a routine delay the refunds whether to exprters or otherwise by issuing rejection letters, issuing SCN which would then be decided againstr the tax payer, in appeal [ sometimes at 2 stages] and when it comes back with a direction, at times again rejected on another reason. What is missing is the accountability of the executive. Era of demecracy/ babudom showing its ugly side???
The Revenue authorities as a routine delay the refunds whether to exprters or otherwise by issuing rejection letters, issuing SCN which would then be decided againstr the tax payer, in appeal [ sometimes at 2 stages] and when it comes back with a direction, at times again rejected on another reason. What is missing is the accountability of the executive. Era of demecracy/ babudom showing its ugly side???
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