TMI Blog2023 (2) TMI 1252X X X X Extracts X X X X X X X X Extracts X X X X ..... declaration for the service tax paid on advances after the introduction of GST on 01/07/2017. On being pointed out by the Department about having wrongly carried forward the prepaid service tax to TRAN-1, they reversed the same in the GST return filed in the month of January 2019. Consequent to reversal, they filed refund claim on 12.3.2019 for the refund of prepaid service tax. The cause of action took place only after the introduction of GST due to which they had to pay duty once again under the GST regime for part taxes paid under Service tax for their projects. The matter is hence not time barred. The factual question is whether tax has been discharged twice for the same activity. The transition from one tax regime to another has it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stered with the Service Tax Department under the category of civil construction and works contract service. The appellant filed refund claim for Rs.4,32,566/- in respect of service tax paid on the amounts received as advances before 30.6.2017. They were paying service tax on the amounts received as advances and were subsequently adjusted with the corresponding sales invoice raised. The service tax paid on advances for these contracts were shown as prepaid taxes in their books of accounts. On introduction of GST they took the prepaid service tax to GST TRAN 1. On being pointed out by the Department about having wrongly carried forward the prepaid service tax to TRAN-1, they reversed the same. Consequent to reversal, they filed refund claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommencing the work and a final bill is raised after completion of the project. ➢ As per Service Tax Rules, the appellant used to pay service tax on the advances in the same month in which it is received. ➢ The service tax paid on advances is captured in the ST-3 returns field for the relevant period. ➢ The appellant has not raised any invoice on the customer for the advance received and has not passed on the servie tax paid to the customers. Therefore, the question of unjust enrichment will not apply in this case. ➢ Some of our customers had financial constraints and hence though the appellant had taken advance for the projects in the year 2003 onwards, the projects were completed much later i.e. afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Service Tax and bills made in GST, abstract showing service tax paid on advance payments received, GST paid in Final Invoice etc, and answered multiple query references from the RO Alandur Range, all of which has not been mentioned in the OIO. 3.2 The learned AR has stated that the date of last challan on which service tax was paid was on 08/07/2017 and the last return filed on 13/08/2017, whereas the Appellant filed refund claim only on 12/03/2019 for the refund of prepaid service tax and hence the claim was time barred. He further reiterated the points given in the impugned order and prayed that the appeal may be rejected. 4. I find that that the appellant is involved in civil construction and works contract service and the compl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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