Refund of Service Tax on Cancelled Flat Bookings Allowed by CESTAT Mumbai

Kanakia Spaces Reality Pvt. Ltd Vs Commissioner of CGST & Central Excise (CESTAT Mumbai) The recent decision by the CESTAT Mumbai regarding the refund of service tax on cancelled bookings of flats by Kanakia Spaces Reality Pvt. Ltd. has significant implications for the real estate sector. Kanakia Spaces Reality Pvt. Ltd., engaged in the construction of residential complexes, faced a challenge when several allottees decided to cancel their bookings. The company had collected service tax on these bookings and subsequently refunded both the booking amount and the service tax to the allottees....