Case Law Details
Pujan Builders Engineers & Contractors Vs C.C.E. & S.T. (CESTAT Ahmedabad)
The facts in the present case is not under dispute that the appellant have paid the excess service tax during the quarter April to June, 2017, however, the appellant under bona fide belief transferred the said excess paid service tax into their TRANS-1 as balance in personal ledger account. Subsequently, on objection raised by the GST department the appellant have reversed the said amount and also paid an interest of Rs. 52,256/- on 27.02.2019. In these peculiar circumstances, I find that since the appellant has transferred the amount of excess paid service tax in the TRANS-1 and same was reversed on 27.02.2019, therefore till the date up to 27.02.2019 there is no cause for claiming refund of this amount. The refund is arising only after the appellant reversed the amount on 27.02.2019. The refund was admittedly filed on 05.04.20 19 i.e well within the prescribed time limit of 1 year in terms of section 11B. Therefore, in my considered view, the refund was filed well within the time. Hence, the same is not time barred. As submitted by the Learned Authorized Representative the issue of unjust enrichment need to be verified at the time when the refund is to be granted to the assessee. Therefore in the present case also though the refund is not hit by limitation but the fact that whether the incidence of the refund amount has been passed on or otherwise needs to be examined by the sanctioning authority.
Accordingly I set aside the impugned order and remand the matter to the adjudicating authority to only verify the unjust enrichment and accordingly, to dispose of the refund claim of the appellant.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
This appeal is directed against Order-In-Appeal No.VAD-EXCUS-002- APP-532-2019-20 dated 13.02.2020 whereby the Learned Commissioner (Appeals) upheld the rejection of refund claim of excess paid service Tax of Rs.1,61,203/- on the ground of time barred. Therefore, the appellant filed present appeal.
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