2018 (5) TMI 113 - AT - Service Tax

Refund of excess amount of service tax - Section 11B of CEA, 1944 - Held that - there is no basis or requirement to amend the work orders, to be eligible to the refund of excess service tax paid - It is quite natural that the value of service tax would be reduced by the service receivers, if the service provider failed to conform the services for which the work orders issued - refund allowed - appeal allowed - decided in favor of appellant.

Summary

Issues involved:
- Appeal against order-in-appeal regarding refund of excess service tax paid during a specific period.

Analysis:
The appeal in question was filed against the order-in-appeal No. APP-03-408/2016-2017 dated 04.11.2016 passed by the Commissioner (Appeals) of Central Excise, Customs, and Service Tax- Vadodara. The central issue at hand was whether the appellant was entitled to a refund of the excess amount of service tax of ?6,59,703/- paid during the period June 2013 to March 2014. The appellant's representative argued that invoices were issued to three service receivers, but the bill amounts were reduced due to deficiencies in service, leading to an excess payment of service tax. This excess payment was certified by a Chartered Accountant, but the authorities below did not appreciate this fact. The Commissioner (Appeals) rejected the appeal on the grounds that the relevant work orders were not amended to indicate the reduced payment against the deficit in taxable services. However, the appellant contended that the reduced taxable value was due to services not conforming to the work orders, negating the need for amending the work orders. The refund was filed under Section 11B of the CEA, 1944, as a service tax matter under Section 83 of the Finance Act, 1994.

The Advocate for the Revenue reiterated the findings of the Commissioner (Appeals). Upon consideration, the Hon'ble Member (Judicial) found that although the service tax was initially paid based on the value of taxable services in the bills, the values were later reduced by the service receivers, resulting in a short receipt of the taxable services. Consequently, the excess service tax paid was rightfully claimed as a refund under Section 11B of the CEA, 1944. There was no requirement to amend the work orders to be eligible for the refund, as it was natural for the service tax to be reduced if the services provided did not align with the work orders. Therefore, the impugned order was set aside, and the appeal was allowed with any consequential relief as per the law. The judgment was dictated and pronounced in the open court by Dr. D. M. Misra, Hon'ble Member (Judicial) of the Appellate Tribunal CESTAT AHMEDABAD.