TMI Blog2023 (8) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Margadarshi Chit Funds [ 2017 (7) TMI 224 - SUPREME COURT] applies to the period post introduction of Negative list in 2012. Thus the entire issue regarding taxability on chit fund attained finality only as per the judgment dated 14.03.2018 and not w.e.f 04.07.2017 as held by adjudication authority. As per the judgment dated 14 March, 2018, Hon ble High court specified that the limitation for filing refund application will be extended for one year from 14.03.2018 - However, Commissioner (Appeals) has not extended the period of limitation on the ground that the appellant was not party to the proceedings pending before the Hon ble High Court. Such finding is unsustainable. It is evident that Appellant is a Member of All Kerala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt of Kerala. On disposal of the writ petition, issue was pending before Division of Hon ble High Court of Kerala including Writ Appeal No.273 of 2013. Considering the judgment of Hon ble Apex Court in the case of Union of India versus Margadarshi Chit funds (supra) the Hon ble High Court of Kerala vide judgment dated 14th March, 2018 disposed writ appeals as per the law laid down by the Hon ble Apex Court. As per Para 9 of the judgment, the Hon ble High Court directed that the assesses has to file claim for refund of the amount already paid on demand made by the Authorities and the refund application will be disposed considering the other issues where tax was collected from individual subscribe or not. The Hon ble High Court specifically ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that appellant is not the petitioner who filed appeal as member of the association. Thus on the ground of limitation appeal was rejected. Aggrieved by the said order appellant filed appeal before this Tribunal. 4. The matter came up before the Single Bench on 30 March, 2023 and considering the submissions made by the learned counsel for the appellant, this Tribunal directed the appellants to produce necessary documents in support of their claim that they are party to proceedings before the Hon ble High Court of Kerala directly or as a member in All Kerala Chitty Foreman s Association. Today when matter came up for hearing, learned counsel produced certificate issued by All Kerala Chitty Foremen s Association and a clarification letter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard to the limitation period for sanction of refund, reliance was also placed on the decision of the Hon'ble Supreme Court in the matter of Salonah Tea Company limited v. Superintendent of Taxes, Now going 1988 (33 ELT. 249 (SC) wherein it was held that if there is no provision for realization of the money under the Act, the act of payment was ultra vires. It is further submitted that it is a settled principle of law that no person can be allowed to take advantage of its own wrongs. In the present case, it was the issuance of an illegal Circular which led to a payment of tax which was not liable to be paid in the first place. It is the case of the appellant that the department had erred in demanding and collecting service tax on ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imitation on the ground that the appellant was not party to the proceedings pending before the Hon ble High Court. Such finding is unsustainable. If benefit can be denied on the ground that appellant is not a party to such a proceeding, Adjudication/appellate authority have no reason to consider even the date of judgment of Hon ble Supreme Court on 4.07.2017 as date of commencement of the period of limitation since appellant was not party to proceedings before the Hon ble Supreme Court also. 7. From the records before me, it is evident that Appellant is a Member of All Kerala Chitty Formen s Association who is one of the petitioner in Writ Petition No.32097 of 2007 and revenue had filed an appeal against judgment of the Ld. Single bench ..... X X X X Extracts X X X X X X X X Extracts X X X X
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