Madras HC: Refund Limitation Runs From SIPCOT Certificate, Not Finance Act Assent

Shen Long Bio-Tech (India) Private Limited Vs Commissioner of GST And Central Excise (Madras High Court)

The Madras High Court considered a Civil Miscellaneous Appeal challenging the Tribunal’s order rejecting the assessee’s refund claim made under the Finance Act, 2017, which granted retrospective effect to an exemption relating to service tax. The principal issue before the Court was whether the appellant was entitled to the benefit of Notification No. 41/2016 dated 22.09.2016 issued by the Ministry of Finance, Government of India, exempting taxable services provided by State Government Industrial Development Corporations or Undertakings to industrial units by way of granting long-term leases of industrial plots from service tax leviable under Section 66B of the Finance Act.

The Court noted that Section 104 of the Finance Act, 2017, which came into force after receiving Presidential assent on 31.03.2017, provided that no service tax would be levied or collected on one-time upfront amounts paid in respect of taxable services provided by State Government industrial development corporations or undertakings to industrial units by way of grant of long-term leases of thirty years or more for the period from 01.06.2007 to 21.09.2016. Section 104(2) provided for refund of service tax already collected, while Section 104(3) stipulated that an application for refund had to be made within six months from the date on which the Finance Bill, 2017 received the assent of the President.