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2022 (3) TMI 194 - AT - Service Tax


Issues:
Refund claim for service tax paid on the construction of a residential complex - Determination of relevant date for computing limitation under Section 11B.

Analysis:
The appellant paid service tax on the construction of a residential complex but later canceled the sale of flats, refunding the amount collected from customers along with service tax. The adjudicating authority sanctioned the refund, which the Revenue challenged on the grounds of time bar. The issue before the tribunal was to determine whether the refund claim was time-barred or not.

Relevant Date for Limitation:
The appellant argued that the relevant date for computing the limitation under Section 11B should be the date of refund to customers, as the service tax payment was finalized only upon the cancellation of flat sales. The tribunal agreed, citing Clause (eb) of Section 11B(B), which states that in cases where adjustment of duty is required, the date of adjustment should be considered for computing limitation.

Precedent and Tribunal Judgment:
The tribunal referred to a previous case involving M/s Ramesh Kumar Agarwal, where it was held that the relevant date for refund claims should be the date when the amount was refunded to customers. The tribunal emphasized that the date of adjustment in the present case was when the appellant refunded the amount to customers due to the cancellation of flat sales.

Decision and Conclusion:
Based on the analysis and precedent, the tribunal concluded that the appellant's refund claim was not time-barred. The tribunal held that the relevant date for computing the limitation under Section 11B should be the date of refund to customers, as it constituted an adjustment of service tax. Consequently, the tribunal allowed the appeal, setting aside the impugned order and upholding the original order for the refund of service tax.

 

 

 

 

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