Service tax refund on garbage collection services upheld where statutory-body recipient fell within the exemption notification.

Refund of service tax paid on garbage collection and disposal services was admissible because the recipient was a statutory body and the services fell within Notification No. 25/2012-ST. The services related to sanitation, conservancy and solid waste management in the MIDC area, and later proceedings had established that MIDC was a statutory body with no service tax liability on the services in question. Since tax had been paid in excess, the refund claim was rightly allowed and the order denying refund was set aside.

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Issues: Whether refund of service tax paid on garbage collection and disposal services was admissible when the recipient was a statutory body and the services were covered by the exemption notification.

Analysis: The services were rendered during the relevant period for garbage collection in the MIDC area. The later appellate proceedings had settled that MIDC was a statutory body and that no service tax liability arose in respect of the services in question. The exemption under Notification No. 25/2012-ST covered services provided to Government, local authorities or government authorities in respect of sanitation, conservancy and solid waste management. On that basis, the amount had been paid in excess and the refund claim was rightly allowed by the adjudicating authority.

Conclusion: The refund was admissible and the order denying refund was set aside in favour of the assessee.

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