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Issues Involved:
The appeal against the order-in-appeal dated 24-5-2004 allowing a refund claim rejected by Order in Originals. Summary: Issue 1: Refund Claim for Service Tax Payment The respondents, Small Scale Industries, availed services of Goods Transport Operators and deposited Service Tax under the belief it was required. A retrospective amendment exempted Small Scale Industries from Service Tax. The refund claim for the period 16-11-97 to 1-6-98 was allowed, but claims for other periods were rejected as time-barred. The appellate authority held the refund should be granted, leading to the appeal. Issue 2: Time Limit for Refund Claim The Department Representative argued that the refund claim should have been filed within the statutory time limit since the respondents paid the amount as Service Tax. Citing relevant case laws, the DR emphasized the importance of adhering to the prescribed time limits for refund claims. Judgment: The Tribunal found that the respondents, being Small Scale Industries, were not liable to pay Service Tax for the period in question due to a retrospective amendment. The department had erroneously collected the tax, and the respondents were not obligated to pay it. Referring to a previous case, the Tribunal affirmed that the provisions for refund of Service Tax did not apply in this situation. The Commissioner (Appeals) correctly relied on this precedent and concluded that the respondents were entitled to a refund. The case laws cited by the DR were deemed irrelevant as they did not address the specific issue of an amount not payable as Tax. Consequently, the Tribunal dismissed the department's appeal, upholding the order-in-appeal granting the refund to the respondents.
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