Time period for claiming refund of excess Service Tax paid under TRAN-1, to be counted from date of it's reversal

Last updated: 11 March 2021

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The CESTAT Ahmedabad has ruled that the time limit for claiming a refund of excess Service Tax paid and credited to TRAN-1 begins from the date this amount was reversed. This decision overturned a previous rejection based on the claim being time-barred. The Tribunal found that the refund application was filed within the stipulated one-year period from the reversal date, not the original payment date.

Court :
CESTAT Ahmedabad

Brief :
The Hon'ble CESTAT Ahmedabad, in Pujan Builders Engineers & Contractors v. CCE and ST Vadodara-II [Service Tax Appeal No. 10516 of 2020, decided on February 11, 2021] set aside the order passed by the Commissioner (Appeals) rejecting the refund claim of excess paid Service Tax of INR 1,61,203/- on the ground of time barred. Held that, the time period for claiming the excess Service Tax paid under GST TRAN-1 is to be counted from date of its reversal. Hence, the same is not time barred.

Citation :
Service Tax Appeal No. 10516 of 2020, decided on February 11, 2021

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