Refund of service tax
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Case Title |
TPI Advisory Services India Private Limited vs Commissioner of Central Tax Bengaluru |
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Court |
Karnataka High Court |
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Honorable Judges |
Justices P.S Dinesh Kumar and Anant Ramanath Hegde |
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Citation |
2022 (6) GSTPanacea 254 HC Karnataka C.E.A No.2 OF 2021 |
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Judgement Date |
01-June-2022 |
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Council for Petitioner |
Mr. K.S Ravi Shankar and N Anand |
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Council for Respondent |
Mr. Jeevan J Neeralagi |
The Karnataka High Court, Bengaluru Bench, has held that, the appellant has paid the service tax and also the GST and the Commissioner of Central Excise has held that appellant was not liable to pay GST, rejection of applications for refund of service tax is untenable.
FACTS OF THE CASE
Brief facts of the case are, appellant runs a Business Management and Consultancy Service. During the course of its business, it had raised four Invoices dated 04.2017, 16.06.2017 and 30.06.2017 for the period from April to June, 2017 for payment of Service Tax of Rs.17,34,952/- against WNS Global Services Private Limited, Tech Mahindra, USA & Morgan Stanley Advantage Services Pvt. Ltd. After raising the Invoices, the said amount was paid by the appellant to the Government. The GST Act came into effect from July 1, 2017. The clients in whose names the Invoices were raised had expressed reservation to make the payment in view of the transition from service tax to GST. The appellant accordingly issued credit notes to those customers and raised fresh Invoices under the provisions of GST, on 30.09.2017, 08.11.2017 and 31.12.2017 for a sum of Rs.21,41,944/- and paid the said amount. Thereafter, appellant filed an application seeking refund of the service tax of Rs.17,84,952/- A show cause notice was issued calling upon the appellant as to why the refund claim should not be rejected. Appellant submitted its explanation leading to Order-in-Original dated 10.01.2019 rejecting the said claim. The appeal filed thereon before the Commissioner of Central Tax (Appeals-II) also stood rejected vide order dated 16.07.2019. A further appeal filed before the CESTAT1, was also dismissed on 27.01.2020. Hence, this appeal.
Refund of service tax
COURT HELD
In Madras Port Trust, it is held that it is high time that the Government and Public Authorities have got the practice of not relying upon technical pleas. It was also argued by Shri. Ravi Shankar that when the CESTAT has been following Total Environment, but yet in the instant case has denied the relief. In view of the undisputed facts that the appellant has paid the service tax and also the GST; and the Commissioner of Central Excise has held that appellant was not liable to pay GST, rejection of applications for refund is untenable. Having paid the service tax in the year 2017 and having submitted its application, the appellant is awaiting the refund from March 2018 till date.
Respondents are directed to refund Rs.17,84,952/- with statutory interest payable under Section 11BB of the Central Excise Act, 1944 within three months from the date of receipt of a copy of this order.
Refund of service tax
ANALYSIS OF THE JUDGEMENT
Refund of service tax should be provided that is paid as due just if client sought GST invoices after the incorporation of GST Act and GST also paid subsequently by the concerned person.
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TPI Advisory Services India Private Limited
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