Limitation period not applicable to refund claim of service tax paid mistakenly

Last updated: 04 February 2022

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The CESTAT has ruled that the limitation period does not apply to claims for refunds of service tax paid mistakenly. In this case, M/s Ishwar Metal Industries was wrongly charged service tax on services that were not leviable. The tribunal determined that the wrongly paid amount should be treated as a deposit, not tax, and therefore, the one-year time limit for refund claims under Section 11B of the Central Excise Act was not applicable. The Revenue Department was directed to refund the amount with interest.

Court :
CESTAT, Delhi

Brief :
The CESTAT, Delhi in M/s Ishwar Metal Industries v. Commissioner, Central Excise and CGST, [Service Tax Appeal No. 51834 of 2018-SM dated January 28, 2022] set aside the order rejecting the refund claim of the assessee for the Service tax paid mistakenly, passed by the Revenue Authority, on the grounds of limitation. Directed the Revenue Department to refund the amount to the assessee along with the interest @12% within 45 days.

Citation :
Service Tax Appeal No. 51834 of 2018-SM dated January 28, 2022

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1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

BEST VALUE

3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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