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September 2022

Service Tax

By Puloma Dalal | Jayesh Gogri | Mandar Telang
Chartered Accountants
Reading Time 4 mins
I. TRIBUNAL

15 Ishwar Metal Industries vs. Commr., C. EX. & CGST, Jaipur
2022 (62) G.S.T.L. 168 (Tri. – Del.)
Date of Order: 28th January, 2022

Limitation period to claim refund does not apply to service tax paid by mistake as the same was merely a deposit, not tax
 
FACTS

The Appellant had procured a work order contract under an open bid from Electricity Board and mistakenly paid service tax on such services, which were not liable to Service Tax. The Appellant did not charge any service tax from Electricity Board. Also, the price charged was fixed and independent of any variation. As per Appellant, the principle of unjust enrichment was not applicable since it had not collected any tax from Electricity Board. The Appellant, thus, filed a refund claim for the amount paid mistakenly. The refund claim was rejected by the Assistant Commissioner on the ground that the amount charged was inclusive of service tax, and the same was time- barred. The Commissioner of Appeals also rejected the Appellant’s refund claim. Being aggrieved by such rejection, the Appellant preferred an appeal before the Tribunal.
 
HELD
It was held that service tax paid mistakenly by the Appellant was merely a deposit and not tax. Accordingly, the limitation period u/s 11B of the Central Excise Act, 1944 to claim the refund did not apply to the amount deposited as
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