Limitation Period not applicable to Refund of Service Tax Paid Mistakenly: CESTAT directs GST Refund in Cash within 45 days [Read Order]

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has directed the GST refund in cash within 45 days and held that Limitation Period Not Applicable to refund of Service Tax Paid Mistakenly.

The appellant, M/s Ishwar Metal Industries has filed a refund claim. It is submitted by the appellants that as per Board’s Circular the work undertaken by them for Electricity Board/Nigam, as aforementioned, are not liable to service tax, hence no service tax was payable.

The amount mistakenly paid was thus a deposit and not service tax, which is refundable to them along with interest u/s 11B. The appellant claimed a refund of such amount paid during the period 2007-08 to 2009-10. They submitted that limitation u/s 11B is not applicable in this case, as the amount was paid mistakenly which was not payable.

The Coram of judicial member Anil Choudhary has found that service tax was not leviable on the services provided by the appellants, which was paid by mistake by the appellants, thus, it will be treated as a deposit, ipso facto, and are entitled to refund.

“As far as applicability of unjust enrichment, in view of the work orders, which were issued to the appellants in the competitive open bid, as per contract it is clear that the prices are Firm in all respect and Independent of any variation. It is also not in dispute that the appellants have not charged any service tax in their invoices. I am of the view that unjust enrichment is also not applicable,” the CESTAT said.

“Accordingly, the appeal is allowed and the impugned order is set aside. The adjudicating authority is directed to grant the refund of the said amount in cash, as required under the Transitional Provisions of CGST Act within 45 days from the receipt of this order, and is further directed to pay interest @12% p.a. from the end of three months from the date of the refund application by the appellant, till the date of grant of refund,” the tribunal added.

To Read the full text of the Order CLICK HERE

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