2020 (4) TMI 806 - AT - Service Tax

Appellants' Refund Claims Upheld: Time-Barred Rejection Overturned

M/s. AVS Auto Finance and M/s. Accurate Marketing Versus Commissioner, Central Excise & Central Goods & Service Tax

M/s. AVS Auto Finance and M/s. Accurate Marketing Versus Commissioner, Central Excise & Central Goods & Service Tax - 2020 (40) G. S. T. L. 63 (Tri. - ... Issues:1. Refund claim rejection as time-barred.2. Failure to pass the bar of unjust enrichment.Analysis:1. The appellants appealed against the rejection of their refund claim as time-barred and for failing to pass the bar of unjust enrichment. The Revenue contended that the refund claims were filed beyond the one-year period and upheld the impugned order.2. The appellants argued that the refund claims were not time-barred as they were filed within one year of the Tribunal's order, which held them not liable to pay service tax. They also asserted that they had not recovered any service tax from the service recipient, thus passing the bar of unjust enrichment.3. The Tribunal found that the refund claims were indeed filed within one year of the Tribunal's order, as required by Section 11B of the Central Excise Act, 1944. Therefore, the claims could not be rejected as time-barred.4. Additionally, it was established that the appellants had paid the service tax under protest and had not charged any service tax from the service recipient at the time of invoicing. Consequently, the Tribunal concluded that the appellants had passed the bar of unjust enrichment in this case.5. As a result, the Tribunal allowed the refund claims, setting aside the impugned order and granting the appellants the entitled refund amount. The appeals were allowed with consequential relief, as per the law.This comprehensive analysis of the judgment highlights the issues of refund claim rejection and unjust enrichment, along with the arguments presented by both parties and the Tribunal's final decision in favor of the appellants.