2019 (10) TMI 592 - AT - Service Tax

Refund of service tax - denial of refund on the ground that the Service Tax was paid in respect of services not completed by them - HELD THAT - It is an undisputed fact that the assessee raised credit note in the name of M/s. CIFCL, which fact was also duly acknowledged by the other party. Moreover, from a perusal of the documents placed on record, M/s. CIFCL has confirmed having received the invoices and also confirmed to have not made any payment against the same. In the same letter, M/s. CIFCL has also confirmed that they have not availed Service Tax Input Credit against the said invoices. In the case on hand, with regard to the appellant s claim of issuing credit note, there is no counter by the Revenue and from the above, therefore, the credit note coupled with the confirmation by M/s. CIFCL is sufficient enough to hold that the appellant is in fact entitled to the refund. The Revenue authorities have not found the ineligibility of the appellant for refund or otherwise for want of any legal requirement, etc. Appeal allowed - decided in favor of appellant.

Summary

Issues Involved:
Denial of refund claim for Service Tax paid on incomplete services.

Analysis:
The appeal was filed against the denial of a refund claim for Service Tax amounting to ?3,91,500 for invoices issued for services deemed incomplete. The Adjudicating Authority highlighted shortcomings in documentation but did not allege the refund claim was incorrect. The First Appellate Authority upheld the rejection, leading to the current appeal.

During the hearing, the appellant's consultant cited relevant legal precedents to support their case. The Revenue's representative supported the lower authorities' findings. The Member (Judicial) considered all contentions, reviewed documents, and referenced legal decisions during the arguments.

It was established that the credit note issued by the appellant to the recipient was acknowledged, and the recipient confirmed non-payment and non-availment of Service Tax credit. Referring to a Mumbai Tribunal case, the authenticity and impact of credit notes on taxable transactions were emphasized. The confirmation by the recipient and the existence of credit notes were deemed sufficient to support the appellant's entitlement to the refund.

Drawing from a Madras High Court decision, the Member concluded that a claim for refund due to a mistake in paying Service Tax should not be rejected for delays. Therefore, the denial of the refund was deemed unjustified, and the appeal was allowed with any consequential benefits as per the law.

In conclusion, the impugned order denying the refund claim was set aside, and the appellant was deemed entitled to the refund of the Service Tax paid. The judgment was delivered on 15.10.2019 in an open court session.