Tribunal overturns order on refund claims due to jurisdictional issues, remands for proper action.

The Tribunal set aside the impugned order rejecting refund claims filed by a branch office where service tax was paid by the head office, citing jurisdictional issues. Emphasizing the importance of jurisdictional clarity, the Tribunal remanded the matter for appropriate action based on earlier precedent, directing transfer to the relevant authority for adjudication.

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Issues:
1. Jurisdiction of the Original Adjudicating Authority over refund claims filed by branch office when service tax paid by head office.

Analysis:
The judgment dealt with the issue of jurisdiction concerning refund claims filed by a branch office when the service tax had been paid by the head office. The appellants had paid service tax on 'Works Contract service' provided to various government departments during a specific period. The exemption on these services was initially omitted but later restored through a notification. Section 102 of the Finance Act, 2016, provided for the non-levy of service tax during a specific period for services provided to the government. The appellants applied for refunds under this section but faced rejection due to lack of supporting documents and failure to demonstrate non-passing of the tax burden. The refund claims were further rejected as they were filed by the branch office, while the service tax was paid by the head office. Both the Original Adjudicating Authority and the Appellate Authority rejected the claims citing jurisdictional issues.

The Tribunal noted a similar issue had been considered in the appellant's own case previously, where the impugned orders were set aside, and matters were remanded to the Original Adjudicating Authority. It was observed that if the Original Adjudicating Authority believed it lacked jurisdiction over the refund claims, the claims should be transferred to the appropriate authority for further action. Following this precedent, the Tribunal set aside the impugned order and remanded the matter for appropriate action based on the earlier order of the Tribunal. The judgment emphasized the importance of jurisdictional clarity in dealing with refund claims and the need for proper transfer of cases to the relevant authority for adjudication.

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