REFUND OF EXCESS SERVICE TAX - PROVISION UNDER ACT

[Guest]

My client had deposited service tax of ₹ 7,19,200/- wrongly in the registration number of his wife in 2015

The matter is detected in December 2019 when his wife's case was under Audit. After detection ₹ 7,19,200/- is paid again against his wife's registration and he claimed refund of the excess payment against his registration as he had no subsequent liability against duty.

Whether there is any provision in the law for getting refund of the excess tax.

Please inform how the amount to be refunded if the claim is rejected by the Joint Commissioner in the light of Sec 11B of C.E.Act

[KASTURI SETHI]

It is time barred case.

[DR.MARIAPPAN GOVINDARAJAN]

December 2019 has not yet come. Since the wrong credit is detected lately and the said tax has been paid in the correct account, the excess paid tax can get refund citing the audit's points.

[KASTURI SETHI]

It is December, 18 and not December, 19. Definition of 'relevant date' is to be followed. As per definition, it is time barred case.No use of filing appeal. No Court will ignore the judgement of Supreme Court, the claim being hit by time limitation.

[DR.MARIAPPAN GOVINDARAJAN]

What is the actual date of detection ?

[Guest]

To. DR.MARIAPPAN GOVINDARAJAN,

Sorry, the actual date of detection is 04.01.2019 when his wife's file was under Service Tax Audit.

The date of payment of Service Tax against wrong Registration Number is 19.02.2016. Amount ₹ 7,19,200/- and it is clearly mentioned in the spot memo of Audit.

As the amount was paid into the credit of Central Government as excess and unutilised Service Tax and whereas it is not any duty, should it be considered in the light of Sec. 11B of the Central Excise Act,1944.

If Joint Commissioner, Central Excise denied accepting the Refund claimed, whether any Appeal could be filed before the Commissioner of Central Excise?

[KASTURI SETHI]

Date of detection is not relevant date. Date of payment is relevant date as per Section 11B of Central Excise Act. It was one year from the date of payment. See Explanation (f) below Section 11B(5). Appeal can be filed within 60 days from the date of receipt of order in original.

AI Summary

Time-bar for tax refund: payment date is the relevant date, audit detection does not extend refund claims. Claim for refund of excess service tax is governed by the statutory limitation framework which treats the date of payment as the relevant date for triggering the refund period; late detection during audit does not extend the limitation. If the assessing officer denies refund, the claimant may pursue the prescribed statutory appeal within the applicable appeal period from receipt of the order.