2019 (7) TMI 1394 - HC - Service Tax

Rectification of Mistake - inadvertent mistake or not - Refund of Service Tax collected from the petitioner/contractor and deposited by the Housing Board with the Tax Authorities - HELD THAT - The order dated 7.3.2019 is hereby modified to the extent that it will be petitioner-contractor who will file a fresh application claiming refund of service tax collected from him and deposited by the Housing Board with the Tax Authorities within three weeks from today and the same shall be considered by the authorities concerned within next one month and release the admissible/due refund in accordance with law. Application allowed.

Summary

Issues:
Modification of order directing Housing Board to claim refund of service tax instead of the contractor/petitioner.

Analysis:
The judgment involved a modification application by the Union of India seeking a change in the order dated 7.3.2019, which directed the Housing Board to apply for a refund of service tax collected from the contractor/petitioner and deposited with the Tax Authorities. The counsel for the Union of India argued that based on previous cases, it is the contractor/petitioner who should make the refund application, not the Housing Board. The court acknowledged the inadvertent mistake in the original order and granted the modification requested by the Union of India. The modified order now requires the contractor/petitioner to file a fresh application for the refund within three weeks, and the authorities are directed to process and release the refund within one month in accordance with the law. The judgment was allowed in the terms mentioned above.

This judgment highlights the importance of procedural correctness in matters of claiming refunds, specifically in the context of service tax. It clarifies the responsibility of the contractor/petitioner to initiate the refund process, emphasizing the need for adherence to established procedures. The court's decision to modify the original order demonstrates a commitment to ensuring that the correct party follows the appropriate steps in seeking refunds, thereby upholding legal principles and procedural fairness. The judgment serves as a reminder of the significance of precision and accuracy in legal proceedings, particularly concerning financial matters such as tax refunds.