Appeal granted, costs awarded to appellant under Central Excise Act

The Tribunal allowed the appeal, overturning the decision of the Commissioner (Appeals) and directing the payment of costs to the appellant. The Tribunal held that the appellant, as the recipient bearing the burden of service tax, was entitled to claim a refund under Section 11B of the Central Excise Act, 1944, following a revision of charges by the Regulatory Board. The jurisdiction issue was resolved in favor of the appellant, emphasizing the right of the purchaser to seek a refund in such circumstances.

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Issues:
1. Refund of service tax under Section 11B of the Central Excise Act, 1944.
2. Jurisdiction for filing refund claim.
3. Interpretation of Section 11B regarding the entitlement to claim refund by the recipient of the service.

Analysis:
Issue 1: The appellant, a cooperative society, applied for a refund of service tax amounting to Rs.16,99,714 under Section 11B of the Central Excise Act, 1944, for the taxable service provided by M/s Reliance Gas Transportation Infrastructure Ltd. (RGTIL) during April 2009 to May 2010. The refund claim was based on the downward revision of charges by the Regulatory Board, resulting in excess service tax remitted by RGTIL.

Issue 2: Initially, the appellant applied for a refund in Navi Mumbai, but the claim was rejected on the grounds of jurisdiction. The Assistant Commissioner, Bareilly, later sanctioned the refund claim, which was appealed by the Revenue. The Commissioner (Appeals), Meerut, allowed the appeal, stating that the refund claim should have been filed by the service provider, not the recipient, as per Section 11B of the Act.

Issue 3: The Tribunal analyzed the scope of Section 11B in light of the Mafatlal Industries case and concluded that a purchaser, if not passing on the burden of service tax, can claim a refund. Referring to precedent cases, the Tribunal established that a customer, in this case, the appellant, who bore the burden of service tax, is entitled to claim a refund following a revision of charges by the Regulatory Board.

Conclusion: The Tribunal found the decision of the Commissioner (Appeals) to be erroneous and lacking proper application of the law declared in Mafatlal Industries. The Tribunal allowed the appeal, quashed the order of the Commissioner (Appeals), and directed the payment of costs to the appellant.

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