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2014 (9) TMI 1075 - AT - Service TaxRefund of amount deposited under Reverse charge mechanism wrongly on export of services - nature of deposit - Held that: - I hold that as no tax was legally payable, the amount paid is in the nature of deposit. The Hon’ble Kerala High Court in the case of KVR Constructions [2012 (7) TMI 22 - KARNATAKA HIGH COURT] have held, where Service Tax was mistakenly paid on construction service, department not disputing that it was not payable due to exemption notification, and that it was not passed on, the department did not have authority to collect. Mere payment of amount could not authorize the Department to regularize/validate and retain it. It was further held that refund could not be rejected on ground of limitation under Section 11B of Central Excise Act. In the facts herein, the ruling as aforementioned is squarely applicable. The appeal is allowed and the impugned order is set aside. The adjudicating authority is directed to disburse the refund within 30 days - appeal allowed - decided in favor of assessee.
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