2009 (8) TMI 260 - AT - Service Tax

Commissioner (Appeals) upheld the orders of the adjudicating authority directing recovery of refund erroneously granted of credit of input service tax. - period involved in these four cases is prior to 18-4-2006 when Section 66A came into effect and, therefore, the appellants were not liable to pay tax for the period prior thereto. Therefore, the refund claims ought not to be rejected for the reason that during the period in dispute, there was no liability cast upon the appellants to pay service tax. I, therefore, set aside the impugned order of the Commissioner (Appeals)

Summary

The Appellate Tribunal CESTAT, Chennai, stayed the operation of the impugned order of the Commissioner (Appeals) and decided the appeals themselves. The Tribunal set aside the order directing recovery of refund of input service tax as the appellants were not liable to pay tax for the period in question before Section 66A came into effect. The impugned order was set aside, and the appeals were allowed.