CESTAT confirms Service Tax Demand as Refund Claim not filed within One Year from Date of Payment of Service Tax [Read Order]

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), confirmed the service tax demand as refund claim not filed within one year from date of payment of service tax

The appellant, M/s. RJB Estate Pvt. Ltd, submitted a claim for refund of service tax of Rs.17,98,429/-. The appellant had entered into a Memorandum of Understanding with M/s. Amar Builders and paid amount of around Rs.6 crores to M/s. Amar Builders. Appellant cancelled the deed with the said M/s. Amar Builders and sought for refund of deposit paid to M/s. Amar Builders. Appellant claims that M/s. Amar Builders deducted Rs.17,98,429/- on account of service tax paid and refunded the balance to the appellant.

The appellant claimed the said amount of service tax towards refund by filing the claim of refund with the Assistant Commissioner, Pune-II CGST Commissionerate. The original authority rejected the claim under the provisions of Section 11B of Central Excise Act, 1944 stating that the claim was filed after expiry of one year from the relevant date, i.e. date of payment of tax.

Vasant Bhat, Chartered Accountant appeared on behalf of the appellant. The Chartered Accountant has submitted that in the present case, relevant date should be treated as 25.03.2019 which is the date of termination of Memorandum of Understanding and not the date of payment of tax.

The Authorized Representative for Revenue, S.B.P. Sinha, stated that Section 11B of Central Excise Act, 1944 is made applicable to service tax matters and limitations are specified in said Section 11B that the claim for refund should be filed within one year from the relevant date and in the instant case, relevant date is date of payment of tax. He has submitted that the appellant had made payment of Rs.6 crores within the calendar year 2012 and, therefore, refund claim filed on 25.03.2019 is definitely beyond one year from the date of payment of tax and, therefore, the impugned order is tenable in law.

A Single Bench of Anil G. Shakkarwar, Member (Technical) observed that “Under the provisions of Section 11B of Central Excise Act, 1944, the refund claim has to be filed within one year from the relevant date and in the present case, relevant date is date of payment of service tax. It is clear from the record that the present refund claim was not filed within one year from the date of payment of service tax. I, therefore, do not find any infirmity in the impugned order.”

To Read the full text of the Order CLICK HERE

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