Smt. Rashmi Nayak Vs Commissioner of GST (CESTAT Kolkata)
The Kolkata CESTAT disposed of an appeal challenging rejection of a Service Tax refund claim relating to land leased to Tata Steel. During audit, the Revenue found that the appellant had leased out land and directed payment of Service Tax on the consideration received. The appellant paid the tax in September 2015 and subsequently filed a refund claim on 3 August 2016, contending that no Service Tax was payable.
The Revenue issued a show cause notice stating that the appellant had voluntarily admitted liability by paying the tax and called upon the appellant to produce documentary evidence establishing that the Service Tax amount of ₹9,65,148 had not been recovered from the lessee. The Adjudicating Authority rejected the refund claim, and the Commissioner (Appeals) upheld that decision.
The Tribunal held that the interests of justice required granting the appellant an opportunity to produce supporting evidence before the Adjudicating Authority. It directed the appellant to furnish documentary evidence supporting the claim that Service Tax was not payable, including evidence regarding the nature of the land lease, if relied upon, and proof that the Service Tax amount had not been collected from the lessee. The Tribunal further directed that all documents and transaction details be certified by a Chartered Accountant. The appellant was granted four months to submit the documents, and the Adjudicating Authority was directed to complete the adjudication within two months thereafter.
