Claim of Refund - Post GST, on demand, appellant paid service ...

Service Tax

October 13, 2021

Claim of Refund - Post GST, on demand, appellant paid service tax under reverse charge basis and claim refund as the same is eligible as Input Tax Credit under the erstwhile law - Section 142 (3) is the transitional provision for claim of refund after the introduction of GST Act, 2017. It says that refund claims of any amount paid under the erstwhile law have to be disposed according to the provisions of the erstwhile law and the amount has to be paid in cash. The appellants have paid the tax under the erstwhile law. In the present case, the claim is only for refund and not proceedings for assessment or adjudication. In such a scenario, only sub-section (3) of section 142 will be attracted. Rejection of the refund claim by referring to sub-section (8) of Section 142 of CGST Act, 2017 is mis-placed. For these reasons, rejection of refund is unjustified. - AT

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