OIKOS Vs. COMMISSIONER OF C. EX., BANGALORE

JUDGEMENT

(1.) THIS Miscellaneous Application, in terms of Rule 41 of CESTAT (Procedure) Rules, has been filed in respect of the Final Order No. 1646/2006 dated 6 -10 -2006 [2007 (5) S.T.R. 229 (Tri.)] passed by this Tribunal.

(2.) THE learned Advocate, Shri R. Dakshina Murthy who appeared on behalf of the appellants pointed out that the Tribunal in the above mentioned order dated 6 -10 -2006 allowed the appeal of appellants were entitled for refund. They filed a refund claim on 16 -11 -2006 along with interest on interest on interest. However the Assistant Commissioner sanctioned the refund of Service Tax amount of Rs. 75,509/ - vide Order -in -Original No. 41/2007 ST dated 26 -2 -2007 without payment of interest. In the Misc. application, the prayer is for the payment of interest on the amount collected from the date of payment. The appellants have relied on a large number of case laws, particularly they have cited the following case laws : -

(3.) ON the other hand, the Departmental Representative has pointed out that the CESTATs Final Order dated 6 -10 -2006 was received in the office of the Commissioner of Service Tax on 30 -11 -2006 and the cheque for refund of the amount due was issued on 26 -2 -2006. Therefore the refund claim had been disposed of within 3 months from the date of receipt of the CESTAT Final Order, which is accordance with the Boards Circular No. 802/35/2004 -CX dated 8 -12 -2004. Therefore there is no question of payment of interest. They had also distinguished the case laws cited by the appellants. It was pointed out by the learned DR that in the present case, the demand arose on account of an adjudication order which was a speaking order and when the adjudication order was set aside by the CESTAT within three months from the date of receipt of the CESTAT order, the refund was granted. Therefore there is no justification in demanding the interest.