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PM-STIAC discusses accelerating Industry-Academia Partnership for Research and InnovationIndia, Singapore hold dialogue over cyber policy44 bids received under 10th Round of Commercial Coal Mine AuctionsCops arrest former Dy PM of Nepal in cooperative fraud casePuri highlights India's Petrochemical potential at India Chem 2024UN reports record high cocaine production in ColombiaMinister unveils 'Aviation Park' showcasing India's Aviation HeritageED finds PFI wanted to start Islamic movement in IndiaBlocking Credit - Rule 86ASEBI says investors can use 3-in-1 accounts to apply online for securitiesI-T- Penalty u/s 271(1)(b) need not be imposed when assessee moved an adjournment application & later complied with notice u/s 142(1): ITAT4 Kanwariyas killed as vehicle runs over them in Banka, BiharI-T- Accounting principles do not prescribe maintaining of a day-to-day stock register, and the books of accounts cannot be rejected on this basis alone: ITATUN food looted and diverted to army in EthiopiaCus - Alleged breach of conditions for operating public bonded warehouse; CESTAT rightly rejected allegations, having found no evidence of any such breach: HCUS budget deficit surges beyond USD 1.8 trillionST - Onus for proving admissibility of Cenvat Credit rests with service provider under Rule 9(6) of the Cenvat Credit Rules, 2004: CESTATIf China goes into Taiwan, Trump promises to impose additional tariffsRussians love Indian films; Putin lauds BollywoodCus - Classification of goods is to be determined in accordance with Customs Tariff Act & General Interpretative Rules; Country-of-Origin Certificate may offer some guidance, but cannot solely dictate classification: CESTATCus - Benefit of such Country-of-Origin certificates cannot be denied if all relevant conditions are met under the applicable Customs Tariff rules: CESTATCuban power grid collapses; Country plunges into darknessCus - As per trite law, merely claiming a classification or exemption does not constitute mis-declaration or suppression - any misclassification does not equate to willful intent to evade duty: CESTATKarnataka mulling over 2% fee on aggregator platforms to bankroll gig worker welfare fundCus - Extended limitation cannot be invoked in case of assessee who is a regular importer with a consistent classification approach: CESTAT
 
ST - Limitation u/s 11B is not applicable when tax paid mistakenly; Principle of unjust enrichment would not apply in case of composite contract price: CESTAT

By TIOL News Service

KOLKATA, MAY 29, 2017: THE appellant had filed refund claims in respect of Service Tax paid by them under Works contract service for the various works executed by them for the Govt. of West Bengal and its various agencies for laying of pipelines for water supply, sewerage lines etc. It is the case of the appellant that they are not liable to pay Service Tax.

The refund claims were rejected on the ground of time bar and unjust enrichment and that the appellant had availed abatement benefit and, therefore, are not entitled to refund.

The Commissioner(Appeals) observed that although the lower authority had rejected the refund claim as hit by the doctrine of unjust enrichment since the refund amount was not ordered to be credited to the Consumer Welfare Fund, the matter was remitted.

Aggrieved, the appellant is before the CESTAT.

After considering the elaborate submissions made by the appellant, the Bench observed noted that there is no dispute that the Service Tax was collected wrongly from the appellant during the period 2007-08 and 2008-09;that both the authorities below denied the refund claim on the ground that a part of the refund claim is barred by limitation beyond the period of one year from the date of deposit of Service Tax as evident from GAR-7 challans.

Adverting to the decisions in Jubilant Enterprises Pvt. Ltd. - 2014-TIOL-702-CESTAT-MUM, Shankar Ramchandra Auctioneers - 2010-TIOL-632-CESTAT-MUM, Geojit BNP Paribas Financial Services Ltd. - 2015-TIOL-1602-HC-KERALA-ST, Hexacom (I) Ltd. - 2006-TIOL-1334-CESTAT-DEL, Amadalavalasa Cooperative Sugars Ltd. - 2007-TIOL-774-CESTAT-BANG M/s. Monnet International Ltd. & Another - 2017-TIOL-1023-CESTAT-DEL, the CESTAT held -

"14. On perusal of the above decisions…, it is seen that the limitation under section 11B of the Central Excise Act would not be applicable in case of payment of tax mistakenly. Further, the principle of unjust enrichment would not apply in the case of composite contract price, as applicable in the present case. …I have also seen the sample invoices placed by the appellants….Therefore, the appellant is entitled to get the refund of tax as claimed by them."

The appeal was allowed with consequential relief.

(See 2017-TIOL-1782-CESTAT-KOL)


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