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2014 (4) TMI 507 - HC - Service TaxDenial of refund claim - Refund of service tax paid under the mistake of law - Appellants paid the service tax on the value of foreign agency commission which they realized - Refund claim filed on the basis of circular of February, 1999 issued by the Central Board of Excise and Customs - assessee paid tax under bona fide belief that such services are covered under Business Auxiliary Services - Held that:- Decision in the case of KVR Construction [012 (7) TMI 22 - KARNATAKA HIGH COURT] distinguished - The last paragraph or some sentences therein cannot be read in isolation. - the Division Bench in upholding the learned Single Judge's observations relied upon the principle that when the amount is deposited with the Department and it does not constitute any demand or payment in accordance with law, then, same deserves to be refunded and while granting and awarding such claim a technical plea of limitation cannot be raised. If the matter was outside the purview of Section 11B, then, the rule of limitation prescribed therein could not have been applied. This judgment is, therefore, clearly distinguishable on facts. The undisputed position is that the amount was paid by the Appellant as service tax. That tax was not imposable or leviable on export of services was a clarification made by the Department and relying on that clarification, the refund of duty or service tax was claimed. This was squarely a case falling within the provisions of the Central Excise Act, 1944 and therefore, the rule of limitation under Section 11B was applied. - That was applied when the application for refund was made invoking Section 11B of the Central Excise Act, 1944. We have no manner of doubt that when this was the provision invoked, same applies with full force including the rule of limitation prescribed therein. - No substantial question of law arises - Decided against assessee.
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