No Service Tax Refund on the basis of GST Invoices without Supply: CESTAT [Read Order]

Tax Refunds - Services - CESTAT - Service Tax - Taxscan

The Customs Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore has held that Service Tax Refund paid are not applicable to subsequent invoices issued as per the request of clients.

The appellant M/s TPI Advisory Services India is registered for providing Business Management & Consultancy Services. They had filed a refunds application on 28.03.2018 for the refund of Service Tax of Rs.17,84,952/- under Section 11B of Central Excise Act, 1944. In their refund claim, they informed that their clients did not accept the Service Tax invoices and as per the client’s request, the appellant had raised the Credit Notes and had paid the GST with fresh invoices raised subsequently and hence they filed this refund application. After verification and scrutiny of the refund claim, the Assistant Commissioner of Central of Tax, Bangalore rejected the refund claim of Rs.17,84,952/- for the reasons that the raising subsequent invoices under GST as per the request of the clients and claiming for the refund of Service Tax already paid under erstwhile Finance Act, 1994 is not under the purview of the law to consider for refund of Service Tax paid.

Aggrieved by the said order, the appellant filed an appeal before the Commissioner (A) who dismissed the appeal in favor of the department.

On appeal, the regional bench of Judicial Member S.S Garg upheld the order of the revenue and held, “. . . The fact of the case makes it clear that the appellant has issued subsequent invoices without any supplies under the GST regime which in itself is violation warranting rejection of the refund. The appellant has violated the provisions of the GST law by issuing an invoice without a supply of goods. . . . In view of my discussion above, I am of the considered view that there is no infirmity in the impugned order which is upheld by dismissing the appeal of the appellant. ”

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