CESTAT: Excess Service Tax Paid by Mistake Is a Deposit — Refund Not Barred by Section 11B Limitation

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Last updated: 24 August 2026
Quick Summary
The CESTAT has ruled that excess service tax paid due to a mistake, where no legal liability existed, should be treated as a 'deposit' rather than actual service tax. This means the one-year time limit under Section 11B for claiming refunds does not apply. The tribunal also confirmed that the tour operator had proven the excess tax was not passed on to customers, thus avoiding the unjust enrichment principle.

Court :
NEW DELHI

Brief :
The CESTAT New Delhi, Principal Bench, in M/s. Vinayak Tour & Travels v. Commissioner of CGST & Central Excise, Indore, Final Order No. 51354/2026 dated 20.08.2026, has allowed the assessee’s appeal concerning refund of excess service tax paid inadvertently.

Citation :
SERVICE TAX APPEAL NO. 51270 OF 2023

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1 Year PLAN
1999
(Excl. of GST ₹359)

2 Years PLAN
3499
(Excl. of GST ₹629)

BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)

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