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TMI Blog2018 (2) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... ad paid service tax on Inward Legal Services rendered by the advocates for the period March 2012 to March 2013 under reverse chare mechanism. The appellant filed a refund claim on 10.07.2014 seeking refund of Rs. 8,47,972/- (Rupees Eight Lakhs Forty Seven Thousand Nine Hundred and Seventy Two only) on the grounds that during March 2012 to March 2013, they have paid service tax under reverse charge mechanism specified vide Notification No. 30/2012-ST dated 20.06.2012, by a mistaken understanding, when they were actually under the threshold limit of turnover during the financial years 2011-2012 and 2012-2013; i.e. they were actually exempted from payment of service tax in terms of Sl. No. 6(b)(iii) of Notification No. 25/2012-ST dated 20.06.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of the Act as well as binding judicial precedent. He further submitted that the original authority found that the refund is not hit by limitation in terms of Section 11B of the Central Excise Act and the Revenue did not file the appeal against this finding of the original authority but the Commissioner (Appeals) on his own has held that the refund claim is also hit by limitation. He further submitted that the Commissioner should not have decided the issue of limitation as the same is not in appeal before him. He further submitted that the levy of service tax is governed by Section 66B of the Finance Act 1994, Sub-section (1) and (2) of Section 68 casts the responsibility to pay service tax on the service provider and service reci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find that the findings of the Commissioner (Appeals) that the claim is barred by limitation is not sustainable in law as the lower authority has already held that the refund claim is not barred by limitation by relying upon the decision of the Karnataka High court in the case of KVR Construction cited supra. Further I find that the Revenue has not challenged the finding of the original authority that the refund is not barred by limitation. Further I also find that the appellant s case is squarely covered by Notification No. 25/2012 which exempts service tax levy on advocate services received by business entities with turnover of less than Rs. 10 lakhs. Once an activity is exempted under Section 66B in terms of Exemption Notification 25/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss entity or a business entity with a turnover up to Rs. 10 lakhs in the preceding financial year and services provided by a person represented to an Arbitral Tribunal were exempted. This exemption takes care of apprehension of Mr. Thacker that services provided by individual advocates or a firm of advocates to small time traders or businessmen would be taxable. Now, the services provided by individuals as an advocate or a partnership firm of advocates by way of legal services to any person other than a business entity or a business entity with a turnover up to Rs. 10 lakhs in the preceding financial year are exempt from the whole of the Service Tax leviable thereon under Section 66B of the Finance Act. Therefore, the small businessman, pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receiver has to bear the brunt and will pay the tax at 100%. This Notification merely recognizes the fact that rendering of such services, namely, legal and support to business entities is the trend of the day. Even an Arbitral Tribunal is not placed in the same position as it was and in the initial stages when Arbitration Act, 1940 was in force. The position and role of a arbitrator was very succinctly discussed in a earlier judgment of the Hon'ble Supreme Court in Food Corporation of India v. Joginderpal Mohinderpal and Anr. reported in AIR 1989 SC 1263. Hon'ble Mr. Justice Sabyasachi Mukherji as my Lord the Chief Justice of India, then was and known for his erudition and learning in arbitration and commercial law, observed as under : " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ution of the Arbitration Act, 1940. Therefore, arbitration as a mode for settlement of disputes between the parties, has a tradition in India. It has a social purpose to fulfil today. It has a great urgency today when there has been an explosion of litigations in the Courts of law established by the sovereign power. New rights created, or awareness of these rights, the erosion of faith in the intrinsic sense of fairness of men, intolerant and uncompromising attitudes are all the factors which block our courts. The courts are full of litigations, which are pending for long time. Therefore, it should be the endeavour of those who are interested in the administration of justice to help settlement by arbitration, if possible. It has also a soci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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