Service tax refund to customers

sivasubramanian (articled assistant) (79 Points)

22 July 2012  

In F.Y. 2011-12 a loan was sanctioned and processing fee inclusive of service tax has been collected. During this F.Y the customers has withdrawn the loan application and a part of the processing fee is to be refunded to the customer. Can the service tax on that amount (refund) be refunded to the customer? If so under what provision it can be done.