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CMA Final · Indirect Tax Laws and Practice · Refund

An appellant deposited an amount under section 129E pending appeal and the appellate authority's order requires its refund. Under section 129EE, interest is payable at the rate notified by the Central Government within what bounds, and from when until when?

Interest runs at the notified rate, between five and thirty-six per cent per annum, on the deposited amount from the date of payment of the section 129E deposit until the date it is refunded, as section 129EE provides.

  1. ANot below five per cent and not exceeding thirty-six per cent per annum, from the date of payment of the deposit till the date of refundCorrect
  2. BNot below five per cent and not exceeding thirty-six per cent per annum, from the date of the appellate order till the date of refund
  3. CNot below ten per cent and not exceeding twenty-four per cent per annum, from the date of payment till the date of refund
  4. DA fixed twelve per cent per annum, from the date of filing the appeal till the date of refund

Explanation

Section 129EE provides interest at a rate fixed by the Central Government, not below five and not exceeding thirty-six per cent per annum, on the deposited amount from the date of payment till the date of refund. The appellate order date is not the starting point.

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