Set Back to KSEB: CESTAT Quashes Granting of Refund Claim of Rs 1.42 crores under ‘Consulting Engineer Service’ on ground of Service Tax Liability [Read Order]
![Set Back to KSEB: CESTAT Quashes Granting of Refund Claim of Rs 1.42 crores under ‘Consulting Engineer Service’ on ground of Service Tax Liability [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/11/KSEB-Service-Tax-Liability-Bangalore-bench-Refund-Claim-taxscan.jpg "Set Back to KSEB: CESTAT Quashes Granting of Refund Claim of Rs 1.42 crores under ‘Consulting Engineer Service’ on ground of Service Tax Liability [Read Order]")
The Bangalore bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the granting of a refund claim of Rs. 1.42 crores against the Kerala State Electricity Board (KSEB) under the consulting engineer service category on the ground of service tax liability. Kerala State Electricity Board, the respondent-assessee had entered into a contract with SNC...
The Bangalore bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the granting of a refund claim of Rs. 1.42 crores against the Kerala State Electricity Board (KSEB) under the consulting engineer service category on the ground of service tax liability.
Kerala State Electricity Board, the respondent-assessee had entered into a contract with SNC Lavalin, Canada to implement a project work and received ‘Consulting Engineer Service’ from the overseas firm and paid consultancy charges to them.
The revenue appealed against the order passed by the Commissioner of Central Excise, Customs & Service Tax (Appeals), Cochin for confirming the granting of a refund claim of Rs.1,42,48,182/- on 08.01.2010.
Dyamappa Airani, the counsel for the department contended that the the order of the adjudicating authority confirming the demand of service Tax merged with the order of the Supreme Court. thus the refund of service tax filed by the assessee in January 2010 was not maintainable and has become infructuous.
During the hearing of the appeal, none appeared on behalf of the assessee.
The Bench observed that the taxability of services received by the assessee from an overseas service provider namely SNC Lavalin, Canada had been ultimately settled by the order of the Supreme Court and thereafter, rejection of the review application filed by the assessee.
Also observed that in the case of Kamalakshi Finance Corporation Ltd., the Supreme Court held that the order of the lower authority got merged with that of the order of the Supreme Court and was binding on the concerned parties to the dispute irrespective of subsequent development of law on the issues involved unless the Final Order was varied/modified by the Apex Court.
The two-member bench comprising D M Misra (Judicial) and Pullela Nageswara Rao (Technical) rejected the granting of the service tax refund claim filed by the assessee while allowing the appeal filed by the revenue.
To Read the full text of the Order CLICK HERE
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