Case Law Details
B.L. Goel & Company Vs Commissioner of Central Excise & Central Goods & Service Tax (CESTAT Delhi)
The brief facts are that the appellant is engaged in running Works Contract Services and services of construction of residential complexes during the period 2013-14 till 2017-2018 (June 2017). Show cause notice dated 23.04.2019 was issued demanding service tax of Rs.5,34,58,093/-. During the investigation stage, the appellant had deposited vide 8 separate challans a total amount of Rs.29,36,382/-. These amounts were deposited during September and December, 2018. In the statement recorded of Shri Sunil Goel, Authorised Signatory of the appellant on 22.03.2019, he stated that this amount has been deposited mistakenly (during investigation). However, in the show cause notice dated 23.04.2019, these amounts deposited were not recognised neither mentioned nor was there proposal for appropriation. During the pendency of the adjudication proceedings, the appellant, in view of the SVLDR Scheme under the Finance (No.2) Act, 2019, read with rules thereunder, applied for settlement of their tax dues under the show cause notice by filing Form SVLDRS-I on 29.11.2019, mentioning that they have already deposited Rs.29,36,382/-. However, pursuant to hearing, Form SVLDRS-III was issued by the Department with the remark, “ the claim of pre-deposit of Rs.29,36,382.00 could not be verified as per records available and the amount has also not been mentioned in the show cause notice for appropriation. Therefore, the amount of Rs.29,36,382.00 cannot be treated as a pre-deposit against the show cause notice for which the SVLDRS-I application has been filed. Accordingly, it is requested to deposit the amount of Rs.2,67,29,046.50 through the link available on SVLDRS-3.” Accordingly, the appellant was directed to deposit the full amount of Rs.2,67,29,046.50 without getting credit of the amount of pre-deposit made during investigation for the reasons wholly attributable to the Department and/or for failure on the part of the Department to verify the tax already paid.
CESTAT find that there is no dispute as regards payment of this amount in question. Further, it is evident from the record that this amount remained unadjusted due to fault of the Department as well as the Designated Committee under the Sabka Vishwas Scheme, who have refused the adjustment of the amount of pre-deposit, stating that the amount is not verifiable. In these circumstances, I hold that this amount remained as the Revenue deposit with the Department and was never adjusted. Further, this amount is not a part of the admitted tax. In these circumstances, I allow this appeal and set aside the impugned order. The Adjudicating Authority is directed to grant refund of Rs.29,36,382/- within a period of 30 days from the date of receipt of this order along with interest @12% per annum from end of three months from the date of filing of the application for refund, till the date of grant of refund.
FULL TEXT OF THE CESTAT DELHI ORDER
The appellant is in appeal against refusal of refund of the amount of Rs.29,36,382/-.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
