Guardian Landmarks LLP Vs Commissioner of Central Excise & Service Tax (CESTAT Mumbai)
In the case of M/s. Guardian Landmarks LLP v. Commissioner of Central Excise & Service Tax, Pune II [Service Tax Appeal No. 88084 of 2019 dated June 06, 2023], the CESTAT, Mumbai granted a refund claim for service tax to a real estate developer on behalf of an unregistered customer. The customer had paid the service tax along with an advance payment but, due to certain circumstances, the real estate purchase contract was subsequently cancelled.
Facts:
M/s. Guardian Landmarks LLP (“the Appellant”) is engaged in the business of construction of residential complex.
Customers had booked their respective flats in the Appellant’s real estate project and entered into a sale agreement dated April 26, 2016 and paid the part payment along with service tax. Out of all customers, 2 customers Ms. Sushma G. Ketkar and Ms. Sayali S. Wankar, due to some reasons cancelled their bookings on June 20, 2018. Subsequently, the Appellant refunded the entire payment made by such customers except service tax amount.
Since the customers were not registered under Service tax, the Appellant on behalf of such customers sought refund of service tax from the Service Tax Authorities.
The Revenue Department issued 2 Show Cause Notices dated April 1, 2019 (“the SCNs”) to the Appellant. The Adjudicating Authority vide Orders-in-Original dated April 09, 2019, and April 11, 2019 (“the OIOs”) respectively rejected both the refund claims on the ground of being time-barred as per Section 11B of the Central Excise Act, 1944 (“the CE Act”).
Aggrieved by the OIOs the Appellant filed an appeal before the Commissioner (Appeals) who vide Order-in-Appeal No. PUN-CT-APPII-0000-039-040-19- 20 dated August 22, 2019 (“the Impugned Order”) upheld the OIOs and rejected the appeal filed by the Appellant.
Aggrieved by the Impugned Order the Appellant filed an appeal before the CESTAT.
Issue:
Whether the unregistered person eligible to get refund of service tax paid on advance amount paid to the real estate developer upon cancellation of booked flats?
Held:
The CESTAT, Mumbai in Service Tax Appeal No. 88084 of 2019 held as under:
