Agarwal Jagdish Construction Co. Pvt Ltd Vs Commissioner(Appeals) and ADG (CESTAT Delhi)
In Agarwal Jagdish Construction Co. Pvt Ltd Vs Commissioner (Appeals) and ADG, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi examined the rejection of a service tax refund claim of ₹70,46,602 filed by the appellant for the period June 2015 to June 2016. The refund pertained to construction services provided to Military Engineering Services (MES), a Government department under the Ministry of Defence, for infrastructure projects including civil structures for the Pinaka Regiment.
The refund claim was filed under Section 102(2) of the Finance Act, 1994 read with Section 11B of the Central Excise Act, 1944, on the ground that such services were exempt. Initially, construction services to Government entities were exempt under Notification No. 25/2012-ST, but the exemption was withdrawn from 01.04.2015. Subsequently, Notification No. 09/2016-ST reintroduced exemption from 01.03.2016 for contracts entered prior to 01.03.2015, and Section 102 provided retrospective exemption and refund for the intervening period from 01.04.2015 to 29.02.2016.
The Department rejected the refund on two grounds: failure to submit supporting documents such as contracts and invoices, and applicability of unjust enrichment. This rejection was upheld by the Commissioner (Appeals), leading to the present appeal.
