service tax refund

[Mukund Thakkar]

Dear All expert,

My client unit audited by Central excise dept. during the course of audit , officer are advise and giving the memo for the payment of service tax under RCM (man power Supply) during the year 2012-13 and 2013-14.along with interest and penalty, in the month of 25.05. 2014. and same is continue by unit, and taking cenvat credit for the payments made by unit,

After period of one year again dept audt conduct on 01.06.2015 and issue the memo for wrong avialment of cenvat credit of RCM ( Man power Supply) saying that you are not Body corporate company but partnership firm. as per RCM notification 30/2012 dated 20.06.2012 sr.no 8 of the said notification you are not falling under the category of RCM and not liable to pay service tax. and eligible to take cenvat credit.. on bases of auidt memo duty reversed creidt.on dated 01.06.2015

on bases of two contradictory input from dept. my client had file the refund case and dept rejected on the ground of limitation of time filling the claim.

please giving your inputs/ guidance for file reply to dept.

AI Summary

Partnership Firm Challenges Rejected Refund Claim, Citing Misapplied RCM Tax and Time Limitations Under Cenvat Credit Rules A client, a partnership firm, was audited by the Central Excise Department and advised to pay service tax under the Reverse Charge Mechanism (RCM) for manpower supply during 2012-2014, which they did along with interest and penalty. In a subsequent audit, the department issued a memo stating the firm was not liable for RCM as it was not a body corporate, leading to a reversal of Cenvat credit. The client's refund claim was rejected due to time limitations. Experts advised challenging the rejection, arguing the payment was not a 'tax' and thus not subject to the one-year limitation for refunds.