Case Law Details
Quality Builders & Contractor Vs Commissioner of Central Excise (CESTAT Delhi)
In a seminal decision, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Delhi, ruled in favor of the appellant, Quality Builders & Contractor. This case was filed against the order passed by the Commissioner (Appeals) upholding the rejection of a service tax refund claimed by the original authority. The crux of the case revolved around the overpayment of service tax and the subsequent denial of the refund.
Analysis
Quality Builders & Contractor had applied for a refund of service tax of Rs. 1,88,463/- paid on services provided by them on the grounds of an excess tax deposit. After several rounds of appeal, their refund claim was rejected by the Commissioner (Appeals), leading to the filing of the instant appeal with CESTAT.
The appellant’s counsel convincingly argued that they had deposited the full tax payable @ 4.944%, although, under the reverse charge mechanism, they were liable to deposit only 50% of it. The appellant also demonstrated that they had borne the incidence of tax and, therefore, were eligible for a refund.
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