CESTAT Chennai: Duty demand set aside, but no refund granted despite reliance on precedent

The Appellate Tribunal CESTAT (CHENNAI) set aside the duty demand from the appellants for a specific period. The Commissioner (Appeals) did not grant a refund despite relying on a previous Tribunal decision, stating that the service tax liability was not extinguished. The appellants, represented by Shri S. Renganathan, were not refunded by the Commissioner (Appeals) after the duty demand was set aside.

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The Appellate Tribunal CESTAT (CHENNAI) set aside the Order-in-Original demanding duty from the appellants for a specific period. The Commissioner (Appeals) relied on a previous Tribunal decision but did not grant a refund, stating that the liability to pay service tax was not extinguished. The appellants were represented by Shri S. Renganathan, and Shri B.L. Meena represented the Revenue. The Commissioner (Appeals) should have ordered a refund after setting aside the service tax demand.

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