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2017 (3) TMI 791 - AT - Service TaxRefund claim - denial on account of time bar u/s 11B of the CEA, 1944 - during the period under consideration, the 'liaisoning Services' provided by appellant were not subject to Service Tax, a refund claim was filed - Held that: - no tax was due against the assessee-Appellants as the services provided by them were not subject to tax. At the relevant time, there was no authority/provision to collect the tax from the assessee- Appellants. Hence, this is an amount which was deposited in good faith - in the instant case also, the assessee-Appellants were not subjected to Service Tax. Therefore, mere payment made by the assessee-Appellants will neither validate the nature of payment nor the nature of transaction. The assessee-Appellants were rendering “liaisoning service”. The said services were not liable to Service Tax at the relevant time. Hence, the Department would not be in a position to collect service tax on the said activities since the same is not leviable - the Government will have no authority to retain the said amount and will have to be refunded. It is not a case of refund of tax, but return of deposit for which limitation (Section 11B of the Act) is not applicable. Appeal allowed - decided in favor of assessee-appellant.
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