SC Allows Review of Service Tax Refund in Airport Rental; Expedites Related Appeals, Halts Recovery Actions Pending Outcome.

The SC allowed the review sought by the Commissioner of CGST and Central Excise concerning a refund of service tax in a rental transaction with an airport authority. The CESTAT had initially permitted the refund, citing a lack of lawful authority for service tax on duty-free shops. The SC affirmed the CESTAT's decision but acknowledged the Union Government's substantial legal arguments regarding distinct regimes for goods and services. Consequently, the SC directed the consolidation of related appeals for expedited hearing and refrained from coercive recovery actions pending final appeal disposal.

---

---

Issues Involved:
The judgment involves a review sought by the Commissioner of CGST and Central Excise regarding a refund of service tax in a rental transaction with Mumbai International Airport Limited.

Details of the Judgment:
1. The respondent, engaged in duty-free shop business at international airports, claimed a refund of service tax based on a government notification. The refund was initially rejected, but the CESTAT allowed the appeal for the refund.
2. The CESTAT concluded that the levy of service tax on duty-free shops at international airports lacked lawful authority, citing a previous decision of the Supreme Court.
3. The Union Government argued that the statutory regime for goods differs from that for services, highlighting pending appeals on similar issues before the Court.
4. The Supreme Court affirmed the CESTAT's judgment, referencing dismissals of related Special Leave Petitions.
5. The Court discussed decisions of the Kerala High Court and the Bombay High Court related to similar issues.
6. The Additional Solicitor General requested tagging the appeal with other pending appeals, emphasizing the distinct regimes for goods and services.
7. The Court noted substantial legal grounds raised by the Union Government during oral hearings.
8. The judgment under review did not consider the Union of India's submissions, focusing only on the respondents' arguments.
9. Considering the potential ramifications and the pending appeals, the Court allowed the review to ensure a comprehensive consideration of the issue.
10. The Court directed administrative actions to consolidate all related appeals for expedited hearing and tagged the present appeal with the others.
11. The Court refrained from making findings on allegations of breach of natural justice, as the appeal was restored for final disposal.
12. Pending the final disposal of the appeal, the Court directed that no coercive recovery steps be taken for the dues in question.

---