Service tax paid for Exempted service during Excise audit

[Asked by Guest]

Dear Experts,

Recently EA 2000 excise audit conducted for April-2017 to June-2017 period and auditors asked us to pay service tax on CFA import.

Accordingly we have paid service tax on our total CFA import but now we came to know that CFA import thorugh aircraft exempted from service tax.

Please advise how we can get our excess paid service tax refund ?

[CA Karan]

You will have to claim refund of the same under section 11B of the Excise Act.

Dear CA Karan Sir,

thanks for reply.Our case related to service tax. should we file online through ACES or manually. please advise

[CA Karan]

You should register the claim on ACES, if it is still allowing. Then submit the acknowledgement and other documents manually.

Dear sir,

ACES still allow to file refund request. please confirm after file refund request are we eligible to get this refund as now central excise and service tax both are merged in GST.

Please share any notification/circular for the same.

[DR.MARIAPPAN GOVINDARAJAN]

You are eligible for refund.

[Rakesh Chitkara]

Ask for issuance of an appealable order which means a demand show cause notice on the plea that the payment was made on the persuasion of Audit Team but was not legal. Simultaneously, file a refund claim. Both would be rejected at the first adjudication stage but would get merged in the appeal stage. It is a long battle but you will get your money back eventually. Show the Editor your draft letter before submitting Good luck

[Ganeshan Kalyani]

Also analysis the refund amount v/s consultancy charges that will have to be paid.

AI Summary

Service tax refund: file under section 11B and pursue simultaneous appealable order to secure recovery.
Reclaim service tax paid on exempt CFA imports by filing a refund under section 11B of the Excise Act: register the claim on ACES if possible, submit acknowledgement and supporting documents manually, and remain eligible for refund despite the merger into GST. Concurrently seek an appealable adjudicatory order and file the refund claim so that any initial rejections can be consolidated at the appeal stage; weigh refund amount against consultancy costs.