2016 (5) TMI 133

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..... me refundable as and when the case of demand of service tax is finalized. Held that:- the demand raised in the show cause notice was dropped by the adjudicating authority and the service tax paid by the appellant is treated as pre-deposit. In case, if any amount deposited during the proceedings of the demand case, refund shall arise only when the demand case is finally decided in favour of the assesse. Though the appellant filed refund claim prior to the dropping of demand but the refund arise from the date of adjudication order by which the demand was dropped. Therefore in any case the date of deposit of service tax cannot be taken as relevant date in terms of Section 11B of the Act. The judgments relied upon by the appellant are applic .....

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..... t of service tax was paid as per the views taken by the audit officer. Subsequently, show cause notice was issued and demand of service tax has been settled by passing adjudication order therefore the refund arises only after adjudication of the show cause notice. He submits that it is a settled position that refund if any arises against the pre-deposit made during the proceedings shall be refundable as outcome of the adjudication of such demand. Therefore the relevant date in this case for the purpose of refund under Section 11B is the date of the adjudication order on the demand case and not from the date of deposit of service tax. He further submits that the amount deposited during investigation is treated as pre-deposit and the same bec .....

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..... mits that if the Bench inclined to allow the appeal on limitation the matter should be remanded to the original authority to examine the issue of unjust enrichment which has not been gone into by both the authorities below. 5. I have carefully considered the submissions made by both the sides. Admittedly the service tax was paid on persuance by the audit officer in respect of overseas service under reverse charge mechanism. The dispute on the issue of taxability on such service was common in all over India and various litigation was going on in various forums. In the present case also the appellant was issued show cause notice for demanding the service tax on the overseas service under reverse charge mechanism for the period prior to 18. .....

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