Case Law Details
RJB Estate Pvt. Ltd. Vs Commissioner of Central Tax (CESTAT Mumbai)
Introduction: In the case of RJB Estate Pvt. Ltd. vs. Commissioner of Central Tax (CESTAT Mumbai), a dispute arose regarding the refund claim of service tax. This article provides an in-depth analysis of the case, including the background, reasons for the refund claim, and the decision reached by CESTAT Mumbai.
Background of the Case: On March 25, 2019, RJB Estate Pvt. Ltd. submitted a claim for the refund of service tax amounting to Rs. 17,98,429/-. The company had previously entered into a Memorandum of Understanding with M/s. Amar Builders on September 25, 2012, and had paid an approximate sum of Rs. 6 crores to M/s. Amar Builders. Subsequently, RJB Estate Pvt. Ltd. canceled the deed with M/s. Amar Builders on June 25, 2019, and sought a refund of the deposit paid to them. The company claimed that M/s. Amar Builders had deducted Rs. 17,98,429/- as service tax and refunded the remaining balance to RJB Estate Pvt. Ltd.
Refund Claim Rejection: RJB Estate Pvt. Ltd. filed the claim for the service tax refund on March 25, 2019, with the Assistant Commissioner, Pune-II CGST Commissionerate. However, the original authority rejected the claim, citing the provisions of Section 11B of the Central Excise Act, 1944. They argued that the claim was filed after the expiration of one year from the relevant date, which, in this case, was the date of payment of tax. Dissatisfied with this decision, RJB Estate Pvt. Ltd. appealed to the Commissioner (Appeals), whose decision is the subject of this case.
Commissioner (Appeals) Decision: The Commissioner (Appeals) upheld the original authority’s decision to reject the refund claim. It was argued that Section 11B of the Central Excise Act, 1944, was applicable to service tax matters, and this section specified that a refund claim should be filed within one year from the relevant date. In this case, the relevant date was considered to be the date of payment of service tax. Since RJB Estate Pvt. Ltd. had made the payment of Rs. 6 crores within the calendar year 2012, the refund claim filed on March 25, 2019, was unquestionably beyond the one-year limitation from the date of payment of tax.
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