Pre-GST service tax refund denied where GST was later paid on subsequent invoices for the same transactions.

Service tax paid on services rendered before GST commenced remained lawfully due under the pre-GST regime, and later payment of GST on fresh invoices did not change that liability. Because the tax had been correctly self-assessed, declared in ST-3 returns, and collected under the then existing law, refund was not available under section 11B merely on the basis of subsequent GST invoicing. The prospective operation of GST left no legal basis to reopen a validly discharged earlier tax liability, so the refund claim was rejected and the denial of refund sustained.

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Issues: Whether the appellant was entitled to refund of service tax already paid for services rendered before the introduction of GST merely because GST was later paid on fresh invoices after issuing credit notes.

Analysis: The service tax was paid for services rendered during April to June 2017 and was duly declared in the ST-3 returns for that period. The liability had arisen under the then prevailing law and was correctly discharged on self-assessment. GST came into force only from 01.07.2017, and the later invoices were raised after the appointed date at the instance of customers. The payment of GST on subsequent invoices did not alter the character of the earlier service tax liability. Since the service tax was legally due when paid, Section 11B did not permit refund of tax that was rightly leviable and collected. The reasoning also rested on the prospective operation of GST and the absence of any legal basis for refund of a tax correctly paid under the earlier regime.

Conclusion: The refund claim was not maintainable and was rightly rejected.

Final Conclusion: The appeal failed and the order denying refund was sustained.

Ratio Decidendi: Tax lawfully paid on services rendered before the commencement of GST cannot be refunded merely because GST was subsequently paid on later invoices for the same commercial transactions.

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