Seeks to notify section 11 to 13 of Finance Act (No.1) 2024

Seeks to amend Notification No. 52/2018-Central Tax, dated 20.09.2018.

Seeks to exempt the registered person whose aggregate turnover in FY 2023-24 is upto Rs. two crores, from filing annual return for the said financial year.

Seeks to rescind Notification no. 27/2022-Central Tax dated 26.12.2022.

Seeks to make amendments (Amendment, 2024) to the CGST Rules, 2017.

Shri Rathi Steel Ltd.  vs. CCE

Appeal No. E/70194/2021 (SM)

F.O. NO. 70338/2024 (SM) DT.07.06.2024

*EX – ISSUE*: *Interest on Refund of Interest* – The case of the department was that the appellant had taken Cenvat Credit on the basis of fake invoices issued by traders. During investigation, due to pressure of department appellants reversed the Cenvat Credit amounting to Rs.39,22,715 along with interest of Rs.18,07,904 in March 2009.   A Show Cause Notice dt. 13.04.2009 was issued,  Adjudicating authority confirmed the demand along with interest and imposed penalty vide Order-in-Original dt.16.01.2010.  Commissioner (Appeals) rejected the appeal vide Order-in-Appeal dt.27.08.2010. The Hon’ble Tribunal allowed the appeal vide F.O NO. A/70454/2017-SM (DR) dt.16.02.2017 and set aside the OIA dt.27.08.2010. 

Appellant filed a letter for refund of Rs.57,30,616 (39,22,715 + 18,07,904) along with interest thereon.  The Assistant Commissioner vide OIO dt. 28.07.2017 sanctioned refund amounting to Rs.57,30,616 (39,22,715 + 18,07,904) however interest did not pay accrued on Rs. 57,30,616.  Commissioner (Appeals) vide impugned OIA dt.18.05.2018 also rejected the appeal.  In appeal Tribunal remanded the matter vide F.O dt.14.01.2020 with direction to decide the claim of interest. Again the adjudication authority rejected the claim of interest vide OIO dt.12.06.2020.  The Commissioner (Appeals) agreed and allowed the interest on Rs.39,22,715 from the date of deposit to the date of refund vide order dt.25.02.2021 however he did not allow interest on Rs.18,07,904 and held that there is no provision for payment of compensatory interest on interest. 

* Jwaria Kainaat and Bipin Garg (Advocate), BAVM Legal, Vasant Kunj, New Delhi* – appeared and argued.  They submitted that the amount is amount deposited whether for duty or interest on duty.  The government has taken benefit of this amount whereas the appellant suffered it and prayed that the appellants are entitled to get interest on Rs.18,07,914 @ 12% from the date of deposit and relied upon the number of judgements *(i)* Indore Treasure Market City Pvt. Ltd. Vs CCE F.O. dt.11.01.2024, *(ii)* Impressive Management Solution F.O. dt.06.04.2023, *(iii)* Kumawat Contractors  F.O. dt.16.01.2024, *(iv)* Raghuveer Metal Industries Ltd. F.O. dt.07.12.2023. etc. The CESTAT Allahabad presided by Mr. P.K.  Choudhary Member (J), in F.O. NO. 70338/2024 (SM) DT.07.06.2024, held that the amount deposited during investigation will be entitled to refund along with interest.  Such amount deposited is neither duty nor interest and refered CBEC Circular No. 984/8/2014-CX dt.16.09.2014 *“5 – Refund of pre-deposit”*.  The impugned order passed by the Commissioner (Appeals)  is set aside as far as denying the interest on Rs.18,07,914 and appeal is allowed.  The adjudicating authority is directed to grant interest upon the said amount, from the date of deposit till the date of refund @ of 12% p.a. which has to be given within a period of 90 days from the date of receipt of copy of this order. 

Seeks to amend the Notification no. 02/2017-CT dated 19.06.2017 with effect from 5th August, 2023