2025 (9) TMI 330

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....aged in the manufacturer of 'BURA', which is prepared from sugar. The appellant had deposited Rs.2,60,139/- and Rs.7,400/- on 28.01.2016 for the services under the head 'Goods Transport Agency Services' as a service receiver under Reverse Charge Mechanism [RCM]. The stand of the appellant is that they were not liable to pay service tax under RCM under Notification. No.30/2012-ST dated 20.06.2012. The relevant provisions of the notification are quoted below:- " The Central Government hereby notifies the following taxable services and the extent of service tax payable thereon by the person liable to pay service tax for the purposes of the said sub-section, namely:- I. The Taxable Services (A) (i) provided or agreed ....

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....ax has not been passed on to any other person by referring to the certificate of the Chartered Accountant. 5. The learned Authorised Representative for the Revenue submitted that the appellant had received goods transport services and the burden to bear the tax liability in general terms lies on the service provider who collects the service tax from the recipient and pays to the government and, therefore, the period of limitation is applicable. 6. Before proceeding further, we need to take note of the findings recorded by the Adjudicating Authority as under:- "Hence the claimant were required to pay service tax on the services availed by them either indirectly or directly, but instead of paying service tax to the service prov....

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....ied to that extent. The issue whether refund could be sanctioned, contrary to the self assessment has been decided by the in ITC Ltd., where the Supreme Court has held that all assessments, including self- assessments and unless assessment is modified, no refund could be sanction so as to change the assessment. The simple reason being that the refund proceedings are in the nature of execution proceedings and cannot be used to determine the liabilities. The observations made in Paragraph 44 of the judgement is as under: "44. The provisions under Section 27 cannot be invoked in the absence of amendment or modification having been made in the bill of entry on the basis of which self-assessment has been made. In other words, the order ....

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....d) The decision of the Apex Court in ITC Ltd. was basically with reference to the provisions of Customs Act, however, the principle laid down that refund proceedings are only in the nature of execution proceedings and cannot change the assessment are also applicable to the provisions of service tax. Though the Larger Bench of the Tribunal in Balaji Warehouse-2023 (11 CENTAX 184 (Tri-Chan.)  by a majority decision of two is to one had held that the decision in ITC Ltd. will not apply to service tax matters but Delhi High Court in BT (India) Pvt Ltd-2023 13 CENTAX 89 (Del.)  held that the decision in ITC Ltd. applies to service tax refund also on the basic principle that refunds are in the nature of execution proceedings and they....