Coimbatore, Aug 2 (KNN) Interest can be paid to the assessees making deposits during pendency of the cases under Customs, Central Excise and Service Tax, according to the Finance Bill 2014 passed by the Parliament on July 25. It has been noticed by Indian Chamber of Commerce and Industry which welcomed the move.
 
 
“In the history of Indirect Taxes the Government of India did not pay interest on the Deposit made by the assessees during the pendency of the cases even though such deposit was kept for many years ranging from 5 to 20 years,” said Secretary, Indian Chamber of Commerce and Industry, R Sivakumar.
 
 
In a letter written to the members of the association, Sivakumar said that, “It was pointed out to the  Government  of India that in the  current  budget,  interest payable on the delayed payment  of Service Tax has been  hiked up to 30 per cent, whereas the Government  of India  never pay even a single  penny interest for keeping  the deposit of the assessees during the pendency of the cases for many years.”

 
It was also suggested to the Government that interest  on pre deposit  should be  made payable, if the  appeal is allowed in favour of assessee  from the date on which such amount was deposited till the date of refund as  in the  line of the provisions of section 244 of Income  Tax Act,  1961, he added.

 
While the Finance Bill, 2014 was presented by Finance Minister in the Finance Bill 2014, on July 10, 2014, there was no such proposal, the letter said.

 
However, we are happy to state that the Government of India moved and passed special amendment to the Finance Bill 2014 by making provisions for providing interest to the  assessees in such cases exactly in line of the suggestion given, it added. (KNN/SD)