Microsoft wins Service Tax Interest Case: CESTAT cites Automatic Interest Provision u/s 11BB

Microsoft has won a service tax interest case, with the CESTAT citing the automatic interest provision under Section 11BB of the Central Excise Act, 1944 (as made applicable to service tax). The case likely involved a delay in the refund of service tax to Microsoft, and the company sought interest on the delayed amount. The CESTAT's ruling in favor of Microsoft underscores the statutory obligation to pay interest on delayed refunds. Section 11BB provides for automatic interest payment if the refund is not sanctioned within a specified period. This decision reinforces the rights of taxpayers to receive timely refunds along with applicable interest for the delay caused by the tax authorities.