The Customs, Excise and Service Tax Appellate Tribunal (CESTAT),Delhi bench has directed the service tax department to allow a refund of Rs. 43 lakhs to Raymond Limited.
Earlier, the department asked the appellant-Company to pay service tax on GTO/GTA services received for the disputed period. Accordingly, the Company paid the service tax under protest. Later, the issue of levy of service tax on GTO service, on the receiver of service under reverse charge mechanism was held ultra virus by the Supreme Court in the case of L. H. Sugar and Laghu Udyog Bharati. Considering the change in law, the appellants claimed a refund of service tax paid by them, which was rejected by the department.
While allowing relief to the appellant, Judicial Member Mr. Anil Chaudhary held that “considering the facts and circumstances and in view of the law pronounced by the Apex Court, I hold that the extended period of limitation cannot be invoked, as admittedly the show cause notice have been issued after the normal period oflimitation. I further find that the whole proceedings and the show cause notice is ab initio void in view of the ruling of the Hon‟ble Supreme Court, noticed herein above.”
“The revenue is directed to grant refund of the amount of Rs. 43,89,613/- to the appellant (paid under protest) with interest @ 12% per annum (as held by this Tribunal in the case of Parle Agro) for the period from 08.11.2003 till the date of payment, within a period of sixty days from the date of receipt/ service of the copy of the order. Accordingly, both the appeals are allowed and the impugned orders in appeal are set aside,” the bench said.Subscribe Taxscan AdFree to view the Judgment