HSBC Files Contempt Case against Indian Govt over Delay in Tax Refund
IANS 17 January 2024
HSBC has filed a contempt of court case against the Central government, alleging non-compliance with the Bombay High Court's ruling concerning a service tax refund.
The Bombay High Court had earlier ruled in favour of HSBC in a service tax dispute and asked the tax department to refund the service tax. HSBC has alleged that the government has not complied with the court order.
HSBC had got its books and records audited for the period March 2007 to 2012. The auditor pointed out that HSBC had not paid service tax on the interchange income earned during this period. As a result of the audit report, HSBC had deposited Rs56 crore voluntarily, although no service tax demand was made by the tax department.
HSBC sought a refund after the final audit report as no show-cause notice was issued about appropriation of the deposited amount by the tax department.
The tax department had argued that the petitioner had voluntarily deposited the amount and the legitimacy of the deposited amount was irrelevant as a similar subject matter was pending before the Supreme Court.
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