2019 (5) TMI 660 - AT - Service Tax

Refund claim - respondent was not liable to pay service tax which was paid to the extent of around ₹ 36 lakhs on behalf of M/s TMF Services India Pvt. Ltd. in respondent s service tax registration code - HELD THAT - The contention of revenue was that the refund should have been filed by the third party. I do not find any merit in the contention of revenue. Appeal filed by Revenue is dismissed.

Summary

Issues: Liability of service tax payment by a third party, refund claim, authority to collect service tax

The judgment by the Appellate Tribunal CESTAT ALLAHABAD, delivered by Mr. Anil G. Shakkarwar, Member (Technical), addressed the issue of service tax liability concerning a refund claim. The respondent had paid service tax amounting to around &8377; 36 lakhs on behalf of another entity, M/s TMF Services India Pvt. Ltd., using the respondent's service tax registration code. The Original Adjudicating Authority ruled that the respondent was not liable to pay this service tax and allowed the refund. This decision was upheld by the learned Commissioner (Appeals) through the impugned Order-in-Appeal.

The main contention raised by the revenue was that the refund claim should have been filed by the third party, M/s TMF Services India Pvt. Ltd. However, the tribunal, represented by Mr. Anil G. Shakkarwar, found no merit in this argument. The tribunal dismissed the appeal filed by the revenue, stating that there was no legal basis for the revenue's claim. Additionally, the cross objections presented as written submissions were also disposed of in the same manner.

In conclusion, the appeal filed by the revenue was rejected by the tribunal, affirming the decision that the respondent was not liable to pay the service tax in question. The judgment clarified the authority to collect service tax and upheld the refund granted to the respondent, emphasizing the lack of legal grounds for the revenue's argument regarding the refund claim.