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सहहायक आयय क कहायहार्याल य

कक न्दद्री य वस्तय एवव सकव हा कर मण्डल , रहाजककोट -I


OFFICE OF THE ASSISTANT COMMISSIONER
CENTRAL GST DIVISION : RAJKOT - I.
“वस्तय एवव सकव हा कर भवन”, रकस ककोसर्या ररींगरकोड, रहाजककोट – ३६०००१
2ND Floor, “GST Bhavan”, Race Course Ring Road, Rajkot – 360001
Tele/Fax – (0281) 2474584/2478245
F.No. V/18-156/ST/REF/2016-17 DATE: 28.12.2018

To, R.P.A.D

M/s Anand Infrastructure

101, Shree Villa, Ram Park Main Road,


Opp. Atmiya College, Kalawad Road,
Rajkot-360005

Subject: Returning the claim papers - regarding

Please refer to your letter dated 03-10-2018 on the subject “Request to issue
interest on S.T. refund of Rs. 26,60,940/-“.

2. Vide above mentioned letter you have claimed interest to the tune of Rs. 5,11,898/-
on the amount of service tax paid amounting to Rs. 26,60,940/- in respect of works contract
services (other than residential complex) provided to various service recipients mainly
Government and local authorities.

3. In this regard, it is submitted that your original application for refund dated
22.11.2016 was sub-judice till the Commissioner (Appeals) Order-in-Appeal no RAJ-EXCUS-
000-APP-055-2018-19 dated 20.04.2018/01.05.2018. Further, you filed the instant refund
claim on 21.05.2018 in pursuance of the said OIA dated 20.04.2018/01.05.2018.

4. After receipt of the refund claim on 25.05.2018, the then Assistant Commissioner
Central GST Div Rajkot-1 sanctioned the same, vide refund order no. R/53/ST/2018-19
dated 24.08.2018. Further, it is added that the sanctioned amount of Rs. 26,60,940/- was
credited to your Bank account on 24.08.2018 and the same has also been endorsed by you
vide your letter dated 03-10-2018.

5. Further, as far as question of interest is concerned you may kindly refer to the
Notification No. 67/2003-CE dated 12.09.2003 and Sec. 11BB of Central Excise Act, 1944
which stipulates about interest on delayed refunds.

6. According to Section 11BB & Notification No. 67/2003-CE dated 12.09.2003,

“ If any duty ordered to be refunded under sub-section (2) of section 11B to any applicant is
not refunded within three months from the date of receipt of application under sub-section
(1) of that section, there shall be paid to that applicant interest at the rate of 6 % per annum
on such duty from the date immediately after the expiry of three months from the date of
receipt of such application till the date of refund of such duty.”
7. In the instant case, the refund claim was filed on 25.05.2018 and you received the
sanctioned amount (as claimed) in your bank account on 24.08.2018 i.e. within a period of
three months (from date of filing). Here it is important to mention that the period allowed
for sanction of refund claim under section 11 B of Central Excise Act, 1944 read with
Section 11 BB is three months. Hence, interest liability arises on such amount of refund
claimed only in case if the refund is sanctioned after the expiry of three months from the
date of receipt of such application till the date of refund. Since the instant refund claim was
processed and sanctioned amount was credited in your bank account within the stipulated
period of three months; therefore, no interest liability due to delayed refund arises in this
case.

8. In view of the above, your claim is found illegal and improper. Therefore, the claim
papers are being returned herewith (in original) as received.

Encl.: As above.

(Sadeesh Kumar K)
Assistant Commissioner
Central GST Div., Rajkot-I