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CMA Final · Indirect Tax Laws and Practice · Refund

An appellant deposited Rs 5,00,000 under section 129E pending appeal and succeeded, so the appellate authority ordered a refund. As per section 129EE, interest on the delayed refund is payable from which date to which date?

Interest runs from the date the appellant paid the deposit under section 129E until the date the amount is refunded. The rate is fixed by the Central Government by notification between five and thirty-six per cent per annum, so the order or application date is not the starting point.

  1. AFrom the date of payment of the deposit till the date of refundCorrect
  2. BFrom the date of the appeal order till the date of refund
  3. CFrom the date of filing the refund application till the date of refund
  4. DFrom the date of the show cause notice till the date of the appeal order

Explanation

Section 129EE provides interest, at a rate between five and thirty-six per cent per annum fixed by the Central Government, on the deposited amount from the date of payment of the amount till the date of refund. Counting from the appeal order or application date is incorrect.

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