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2022 (4) TMI 1209 - HC - Service TaxRefund of amount deposited under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - refund sought on the premise that the withdrawal of the appeal filed by the Tax Department under Government Policy made Petitioners legally entitled for the refund of the amount since there are no dues - effect of CBIC Instructions dated 22nd August, 2019 raising the monetary limit for fling appeals by the Tax Department before different forums - HELD THAT:- On the date of issuance of CBIC instructions dated 22nd August, 2019 and follow-up instructions dated 14th October, 2019, nothing was due from the Petitioners. However, to get out of the legal conflict raised by way of department’s appeal, the Petitioners applied under the scheme. The authority despite knowledge that the appeal would not survive by virtue of CBIC instructions, still processed the declaration and raised demand by keeping the appeal pending. In short, the department cannot take disadvantage of their own wrong of in action of withdrawing appeal. In that case there was no reason for the Petitioners to apply under the scheme and consequential deposit of amount as per the declaration. In all fairness, the Taxing Department cannot enrich itself by unauthorized collection of the amount which needs to be refunded - the Respondents are directed to refund the sum of ₹ 90,92,263/- to the Petitioners, within three months from the communication of this order - petition allowed.
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