C K P Mandal Vs. Commissioner of Service Tax [2015-TIOL-98-CESTAT-MUM]
C K P Mandal (the Appellant) is a Charitable Trust. It has two halls which are given on hire for various functions. On hire charges, the Appellant was paying Service tax under the category of Mandap keeper. The Appellant also received donations from caterers and decorators for permitting them to use the halls. The Department asked the Appellant to pay Service tax on the amount of donations received.
However, after a few rounds of litigation up to the Hon’ble High Court, it was held that donations received by Appellant from caterers are not leviable to Service tax. Pursuant to the High Court order, the Appellant filed two refund claims out of which refund claim of Rs. 47,029/- was sanctioned and the other of Rs. 71,759/- was rejected on the ground of time barred.
On appeal being filed to the Commissioner (Appeals), rejection of the refund claim was upheld. Being aggrieved, the Appellant filed an appeal before the Hon’ble CESTAT, Mumbai submitting the following:
As regards the refund of Rs. 47,029/- already sanctioned under Section 11B of the Excise Act, the Hon’ble CESTAT, Mumbai ordered interest to be paid under Section 11BB thereof. Further, as regards the refund rejected on the ground of being time barred, the Hon’ble Tribunal held as under:
Therefore, the Appellant was held to be entitled to refund along with appropriate interest payable under law.