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2019 (4) TMI 134 - KARNATAKA HIGH COURTRefund of service tax - service tax paid under mistake of fact - MESCOM ledger maintenance service - rejection on the ground of time limitation - Section 11B of the Central Excise Act, 1994 - Held that:- The settled principle of law is mere payment of tax made by the respondent under the mistaken notion would neither validate the nature of payment nor the nature of transaction. The controversy in the present case involves around the applicability of Section 11B of the Act to the facts of the present case - In the KVR Construction, [2012 (7) TMI 22 - KARNATAKA HIGH COURT], the Division Bench of this Court has categorically observed that when once there was no compulsion or duty cast to pay the service tax, the amount paid by petitioner under mistaken notion, would not be a duty or “service tax” payable in law. The petitioner has paid tax amount on a mistaken notion and the maintenance of books of MESCOM is not a taxable service, the department cannot get itself unjust enriched by relying on Section 11B of the Act. If the services are not coming within the ambit of taxable service as contemplated under the Act 1994, Section 11B of the Act is not applicable. Hence, respondent No.2 is directed to refund the tax amount to the petitioner. Petition disposed off.
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