How to claim refund of Service Tax ?

[Sumeet Tholle]

Dear All,

I purchased one bunglow from builder and paid Service Tax to him.

Now I want to claim refund of Service Tax ?

Can I claim refund of Service Tax on my own without builder ? (pl. ignore ground)

What is the procedure ?

Recently I referred one judgement of Abhay R. Chandak CCE, Nagpur (2013 (12) TMI 1225 - CESTAT MUMBAI) in which Mr. Chandak purchased flat from builder and paid Service Tax and later Mr. Chandak filed refund claim. (Claim is rejected on the ground of limitation.)

Pl. guide.

Thanks & Regards.

Sumeet Tholle, CA, Aurangabad.

[PAWAN KUMAR]

As per my view, there is no such provision of refund in a case where the user is eligible for refund of service tax paid.

[YAGAY andSUN]

Dear Sumeet,

Service tax is a Consumption Tax which is recovered from the recipient of services.  You had paid service tax on purchase of flat and it means you were the end user of this service.  Therefore, in our opinion you are not eligible for claiming any refund of service tax.

Regards,

Team YAGAY & SUN,

(Indirect Taxation)

AI Summary

Service tax as a consumption tax prevents end-user purchasers from obtaining refunds, with limitation posing added procedural barriers. Purchaser-paid service tax on buying a residential unit is characterised as a consumption tax borne by the recipient; consequently, an end-user purchaser generally lacks a statutory mechanism to obtain a refund. Practitioners also note that attempted refund claims by buyers can be defeated on procedural grounds such as limitation, compounding substantive ineligibility.