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2022 (12) TMI 601 - AT - Service TaxRefund of service tax wrongly / under a mistake of law - Period of limitation - Club or Association Services - refund claim on the ground that, they have paid service tax under protest as they are Co-operative Society not engaged in any activity of profit and as per the principle of mutuality, services provided by them to their members would not be liable to Service tax under the Club or Association Service. - HELD THAT:- In view of series of decisions it is clear that the appellant cannot be said to be liable to pay service tax in any manner whatsoever inasmuch as what was paid by the appellant was not tax as envisaged under the Finance Act, 1994. Thus, the amount paid by the Appellant would not take the character of tax but is simply an amount paid under a mistake of law. Since Service Tax received by the concerned authority is not backed by any authority of law, in view of the provisions of Article 265 of the Constitution, the authority concerned has no right to retain the same. A similar view has been taken by the Hon’ble High Court of Judicature at Bombay in the matter of Parijat Construction v. Commissioner Excise, Nashik, [2017 (10) TMI 659 - BOMBAY HIGH COURT]. by holding that limitation prescribed under Section 11B of Central Excise Act, 1944 not applicable to refund claims for Service Tax paid under mistake of law. Refund allowed.
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