Service Tax Refund

[Taju Sharma]

Can Assessee avail Service Tax Refund of Input Service (RCM) Challan paid during the Service Tax Audit on the basis of Audit finding. Please quote relevant case laws, if available. Thanks

AI Summary

Refund of Input Service Tax Deposit Possible if Paid Without Written Instructions, No One-Year Limit: Section 11B Central Excise Act An individual inquired about the eligibility for a Service Tax refund on an Input Service Reverse Charge Mechanism (RCM) Challan paid during a Service Tax audit based on audit findings. An expert advised that if the tax was paid without written instruction from the department, it is considered a 'deposit' rather than 'Service Tax,' allowing for a refund application under Section 11B of the Central Excise Act. The expert emphasized that the one-year refund application limit does not apply to deposits. The individual clarified that the assessee, engaged in service export, paid the RCM Challan on imported services and sought input credit and a refund under Rule 5 of the CCR, 2004.