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2023 (12) TMI 125 - CESTAT KOLKATARefund of the service tax paid - Rejection of refund on the ground of time limitation - rejection of claim on the ground that the refund claim was filed beyond the period of six months as prescribed under Section 104(3) of Finance Act, 2017 - HELD THAT:- N/N. 41/2016-S.T. dated 22-9-2016 exempts services received by way of grant of long-term lease of industrial plots from the State Government Industrial Development Corporation/undertakings. The said Notification extended the exemption to prior period by section 104 of the Finance Act 1994, by the Finance Act 2017 for the period 1.6.2007 to 21.9.2016. Section 104(3) prescribed a time limit of 6 months to file the refund application. But, the Notification is silent about the authority with whom the refund application is to be filed. Normally, the refund application is to be filed with the Service tax department. But, the Appellant in this case has not paid the service tax directly to the Service tax Department. They paid the service tax to KMDA, who paid the tax in the Government Account. It is observed that the Appellant made sincere effort to file the refund claim well within the time limit of six months prescribed in Section 104(3). The delay in filing the refund with the service Tax department was only due to inaction by the service tax department and improper advice by KMDA. They have filed the refund claim well in time with KMDA with whom they paid the service tax. As the Notification 41/2016 was not clear with whom the refund application was to be filed, the delay has happened. Thus, the delay in filing the refund application with the service tax department was not due to the fault of the Appellant. Hon'ble Madras High Court in the case of M/S. GRAND TECHNOLOGIES VERSUS THE ASSISTANT COMMISSIONER OF GST & CE, PUDUCHERRY [2022 (9) TMI 9 - MADRAS HIGH COURT], allowed the refund claim on similar facts and circumstances by holding that the period of limitation prescribed in Section 104(3) is not applicable - the decision of Hon'ble Madras High Court is squarely applicable in this case. The impugned order rejecting the refund claim on time bar ground set aside - the Appellant is eligible for sanction of the refund by ignoring the time bar aspect as held by the Hon'ble Madras High Court in the case of Grand Technologies - appeal allowed.
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