2023 (5) TMI 568 - AT - Service Tax

Rejection of refund claim - appellant had not produced the copies of the bills raised but had only produced the running bills from which it was not possible to ascertain whether the said payment of tax was in fact relating to the tax paid on exempted services only - HELD THAT - As regards the claims of refund for the service tax paid towards construction of the Regional Cancer Centre Trivandrum, and the Vadakara Taluk hospital, the appellant has submitted copies of the Agreements executed with the Hospital, and other corroborative documents such as the invoices, VAT returns, 26AS statement, as well as a certificate from the service recipient regarding the services executed by the appellant. A perusal of the invoice raised by the appellant towards the Regional Cancer Centre indicates the quantum of service tax paid at the prevailing rate of 14% during the relevant time. There is no doubt that the appellant had submitted other statutory documents from where verification can be done. In view of the above, the refund claim for services provided to the Regional Cancer Centre, Trivandrum and Vadakara Taluk hospital is admissible. As per definition of Governmental Authority, in order to qualify as governmental authority the body has to be either setup by an Act of Parliament or State Legislature, or established by the Government as per the conditions mentioned - In the instant case, it is clear that the service recipient M/s CAPE is a society registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955 and is engaged in imparting professional education. As per the details available on the public domain, the Cooperative Academy of Professional Education, Kerala is promoted by the Cooperation Department of the Government of Kerala and is an autonomous society under the same. There is nothing on record to show that the State Government exercises 90% or more by way of control of the trust. There is no reason to interfere in the findings in the impugned order in this regard - Appeal disposed off.

Summary

Issues involved: Appeal against the impugned Order in Appeal rejecting refund claim for service tax paid during a specific period for works contract services provided to the government.

Refund Claim for Regional Cancer Centre, Trivandrum: The appellant submitted relevant documents including agreements, invoices, VAT returns, and service tax paid, but the refund was rejected for lack of bills raised on RCC. The appellant argued that all necessary documents were enclosed, making the refund admissible. The tribunal found the claim admissible based on the submitted documents.

Refund Claim for Cooperative Academy of Professional Education (CAPE): The authorized representative contended that CAPE was not a governmental authority as it was not set up by a state legislature act or established by the State government. The tribunal upheld the rejection of the refund claim for CAPE based on the lack of control by the State government.

Refund Claim for Vadakara Taluk Hospital: The appellant submitted agreements, invoices, VAT returns, and service tax paid, asserting the refund was admissible. The authorized representative argued that bills raised were not produced to verify the tax payment on exempted services. The tribunal found the submitted documents sufficient to support the refund claim for services provided to the hospital.

Admissibility of Refund to M/s CAPE, Kerala: The tribunal examined the definition of 'governmental authority' and found that M/s CAPE did not meet the criteria of being set up by an Act of Parliament or State Legislature, or established by the Government with 90% or more participation. As CAPE was not under significant government control, the tribunal upheld the rejection of the refund claim.

Final Decision: The tribunal modified the order in appeal, allowing the appeal only for the refund claims related to services provided to the Regional Cancer Centre, Trivandrum, and Vadakara Taluk hospital, while upholding the rejection of the refund claim for services provided to M/s CAPE, Kerala.