Relief to Sourav Ganguly, petition challenging decision to pay interest in service tax case dismissed

Kolkata. Former Indian cricket team captain Sourav Ganguly has got relief in a tax case. The Calcutta High Court has dismissed the appeal of the Commissioner of Service Tax (Commissioner of Service Tax) against the order of the Tribunal to pay interest in the case of Sourav Ganguly. Justice TS Sivagnanam and Justice Hiranmoy Bhattacharya said that there is no point in considering this appeal.

The tribunal, in its order, had asked Ganguly to return the amount wrongly taken as service tax along with interest. On December 14, 2020, the Kolkata-based Custom, Excise and Service Tax Appellate Tribunal (East Zonal Bench) asked Ganguly to return the demanded amount and interest thereon. The Revenue Department challenged this order in the High Court.

The case is 12 years old
This matter is more than a decade old. Ganguly was served a show cause notice on September 26, 2011. In the notice, he was asked to pay service tax for the promotion of the brand. The service tax demanded in the show cause notice was confirmed by the Service Tax Commissioner in his decision in November, 2012. Also directed to pay interest and penalty.

Ganguly deposited Rs 1,51,66,500 on February 26, 2014 and paid Rs 50 lakh in March, 2014 under the High Court’s interim order. On Ganguly’s petition, the High Court said on June 30, 2016 that he is not only entitled to the amount given but also to get interest at the rate of 10 per cent.

Challenging the order of the Revenue Department
After challenging the order of the revenue department, the bench said in February 2017 that Ganguly should present his case before the tribunal and the single bench erred in considering the petition. Ganguly then filed an appeal before the tribunal. Accepting Ganguly’s appeal, the tribunal ordered to return the amount along with interest on February 9, 2021.

Rs 59,85,338 was returned to Ganguly as interest
After that, the Revenue Department challenged the order of payment of interest to the former cricketer in the bench. The bench said earlier this week that it is not clear what is the point of appealing when the interest has already been paid. Rs 59,85,338 was returned to Ganguly as interest.

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