Taxpayer made pre-deposit of whole Demand of Service Tax: CESTAT upholds 7.5 % Interest on Deposited Demand

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in Kolkata ruled that a taxpayer must pay 7.5% interest on the deposited service tax demand. Despite the taxpayer pre-depositing the entire service tax amount, the tribunal upheld this interest requirement. The interest was calculated from December 28, 2018, to September 1, 2022, at an annual rate of 12%. The case involved a Gas Cracker Project aimed at the development of Assam.