Dear Sir,
We had deposited the demand of service tax under protest during pendency of proceedings. The amount was deposited by debiting RG 23 Register part A (SC + Cess + SHE Cess) and was deposited by utilizing the ITC of respective heads.
Now the appeal has been decided in our favour, but the department is rejecting the refund of the amount deposited under protest, by pressing into service section 140(1) of CGST Act.
Please guide how to defend the SCN
Taxpayer Challenges Service Tax Refund Denial Under CGST Act Section 140(1) Despite Favorable Appeal Outcome A taxpayer deposited service tax under protest using input tax credit during pending proceedings. After the appeal was decided in their favor, the department rejected the refund by invoking Section 140(1) of the CGST Act. Legal experts argue the rejection is unjustified, as the deposit was not a tax payment but a contingent deposit, and the credit utilized was not part of the transitional credit under GST regime. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
