2022 (11) TMI 499 - AT - Service Tax

Refund claim for excess paid service tax - rejection on the ground that this excess paid Service Tax could have been adjusted against the subsequent liability in terms of Rule 6(4A) of the Service Tax Rule 1994 - applicability of time limitation - HELD THAT - The undisputed fact is that though this tax pertains to the period month ending 31 March, 2017 but the appellant have paid the excess Service Tax on 03.06.2017. The refund claim for the same was filed on 01.06.2018. Learned Commissioner (Appeals) has contended that the relevant date should be taken as of due date of payment - the relevant date provided under Section 11B in the facts of the present case the Clause (f) is applicable according to which the date of payment is the relevant date, therefore, the date of payment being 03.06.2017 and refund filing dated 01.06.2018, the appellant s refund claim is well within 1 year from the date of excess payment of Service Tax. Accordingly, the refund is not time barred. Refund amount of Rs. 11,804/- - rejection on the ground that the appellant have not submitted the documents - HELD THAT - It is crystal clear that the appellant as against the actual income of Rs. 1976933.51 for the month of May, 2017 in ST-3 return wrong amount of Rs. 20,55,619/- was oversightly mentioned. Due to this reason on this wrong amount the Service Tax was paid, hence, there is excess payment of Service Tax. With the documents submitted by the appellant it can be conveniently ascertained what is the actual value of the service provided by the appellant - no more documents is required, therefore, the contention of the Learned Commissioner (Appeals) that the appellant have not submitted the documents in support of the claim is absolutely contrary to the documents available on the records. The appellant is legally entitle for the refund - Appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Refund claim for excess Service Tax payment of Rs. 92,321/-.
2. Refund claim for excess Service Tax payment of Rs. 11,804/-.

Analysis:
1. The appellant, an Insurance Agent, paid excess Service Tax of Rs. 92,321/- due to adjustments with Insurance Company resulting in a credit note issuance. The adjudicating authority rejected the refund claim citing Rule 6(4A) of Service Tax Rule 1994. The Commissioner (Appeals) upheld the rejection on the ground of being time-barred. However, the appellant argued that the refund claim was filed within 1 year from the actual payment date of 3rd June 2017, not the due date of March 2017. The Tribunal agreed, citing Section 11B, where the relevant date for limitation is the payment date. Hence, the refund claim of Rs. 92,321/- was deemed not time-barred and allowed.

2. Regarding the refund claim of Rs. 11,804/-, the Commissioner (Appeals) rejected it due to lack of submitted documents supporting the excess payment of Service Tax. The appellant provided income statements, ledgers, C.A Certificate, and director's affidavit to establish the correct taxable value. The Tribunal found the actual income recorded in the books was Rs. 1,976,933.51, while ST-3 return wrongly showed Rs. 20,55,619/-. This error led to the excess payment of Service Tax. After reviewing the submitted documents, the Tribunal concluded that the appellant was entitled to the refund of Rs. 1,04,125/-. The impugned order was set aside, and the appeal was allowed.