HSBC files contempt case against govt over delay in tax refund

MUMBAI: HSBC has filed a contempt of courtroom case towards the Central authorities, alleging non-compliance with the Bombay Excessive Court docket’s ruling regarding a service tax refund.

The Bombay Excessive Court docket had earlier dominated in favour of HSBC in a service tax dispute and requested the tax division to refund the service tax. HSBC has alleged that the federal government has not complied with the courtroom order.

HSBC had acquired its books and data audited for the interval March 2007 to 2012. The auditor identified that HSBC had not paid service tax on the interchange revenue earned throughout this era. Because of the audit report, HSBC had deposited Rs 56 crore voluntarily, though no service tax demand was made by the tax division.

HSBC sought a refund after the ultimate audit report as no present trigger discover was issued about appropriation of the deposited quantity by the tax division.

The tax division had argued that the petitioner had voluntarily deposited the quantity, and the legitimacy of the deposited quantity was irrelevant as the same material was pending earlier than the Supreme Court docket.