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2022 (3) TMI 194 - CESTAT AHMEDABADRefund of service tax paid - relevant date for cancellation of sale of flat - rejection of refund on the ground of time limitation - HELD THAT:- In the facts of the present case the appellant have paid service tax even though the service was not completed and subsequently when the sale agreement was cancelled the appellant have returned the value of flat along with service tax to their customers. The date of finalization i.e. Cancellation of sale of flat and refund of amount should be taken as a relevant date for computing the limitation under Section 11B - From the provision of clause (eb) of section 11B(B) it is clear that in the case where the service tax payment need to be adjusted at a later stage. The date of adjustment has to be reckoned for the purpose of computing limitation. In the present case the fund has arisen from cancellation of the sale of flats and refund of amount to the customers. In my view this stage should be considered as adjustment of service tax hence, the one year period should be computed from the date of refund of amount made to their customers against cancellation of sale of flats. Reliance placed in the case of M/S. RAMESH KUMAR AGARWAL VERSUS COMMISSIONER OF CENTRAL EXCISE & CENTRAL GST, JAIPUR-I [2021 (7) TMI 360 - CESTAT NEW DELHI] where it was held that The period of one year, in the given facts and circumstances, shall reckon from 15.10.2017 when appellant returned the amount of sale consideration to Shri K.K. Agarwal instead of 04.10.2016. The refund claim filed on 7th May, 2018 therefore, stands very much within the period of one year. The appellant’s refund claim is not time bar - Appeal allowed - decided in favor of appellant.
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