ST - Donations not liable to Service Tax - Time bar u/s 11B of CEA, 1944 will apply only if demand has been paid as duty under law - since no demand made and tax was not payable in law, refund not time barred: CESTAT

The Tribunal while allowing refund has also granted interest. The Tribunal has relied upon the Karnataka HC judgement in the case of KVR constructions. As per the judgement of the Division bench of the HC (the single member judgement was challenged by the revenue) in KVR constructions such erroneously paid duty which was not legally payable will not have the character of duty and thus the provisions of Section 11B will not be applicable. If so, can the appellant be granted interest under Section 11BB as Section 11BB deals with interest on delayed payment of duty.

cestatahm3 cestatahm3 13/01/2015