Service Tax Rebate Delays Beyond 3 Months attract Interest until its Full Refund: CESTAT

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Delhi ruled that delays in refunding a service tax rebate beyond three months from the date of filing the refund application would attract interest until the refund is realized. The case involved DSS Image Tech Private Limited, which filed for a rebate claim that was initially dismissed but later granted by the tribunal. However, the adjudicating authority did not grant interest for the delay. The tribunal referred to Section 11BB of the Central Excise Act 1944, applicable to service tax matters, which mandates interest payment after three months from the date of the refund application. The tribunal ruled that the appellant is entitled to interest from three months after the original refund application date until the refund is paid.