Tribunal grants appeal for service tax refund, prioritizing substance over technicalities

The Tribunal allowed the appeal, setting aside the rejection of the refund claim by the banking company for service tax paid under Works Contract Service. The Tribunal found that although the tax was initially misclassified, the appellant had indeed paid the tax and provided evidence through a certificate from a Chartered Accountant. Emphasizing substance over technicalities, the Tribunal granted the appeal with consequential relief, if applicable.

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Issues:
- Appeal against rejection of refund claim for non-verification of records.

Analysis:
1. The appellant, a banking company, filed a refund claim after paying service tax under Reverse Charge Mechanism on Works Contract Service received from L.G. Electronics Pvt. Ltd. The claim was rejected due to failure to prove payment and nature of service tax.

2. The Tribunal noted that the appellant had indeed paid the service tax under Banking and Financial Institution Services, albeit incorrectly categorized. The refund claim was for service tax paid under Works Contract Service, evidenced by a certificate from a Chartered Accountant.

3. The Tribunal found no merit in rejecting the refund claim based on technical grounds. The appellant had paid the service tax, albeit misclassified, and provided evidence to support the nature of the tax paid.

4. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief, if any. The Tribunal emphasized the importance of substance over technicalities in such matters.

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