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TMI Blog2025 (2) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... 0% of the service tax payable in terms of the Contract, thereby service tax was paid 150% of the tax payable. On being aware of the same, the appellant approaching the Housing Board vide letters dated September 28, 2015, December 08, 2015 and January 04, 2016; meanwhile, some contractors approached the Hon'ble Punjab & Haryana High Court vide Writ Petition No.12541 of 2015. 2. Hon'ble High Court held vide Order dated July 1st, 2012 that no service tax is leviable on the contracts for construction of triple storied residential flats constructed for BPL families; accordingly, the appellant approached the Board for refund of 50% of the duty paid and retained by the Board vide letters dated August 28, 2016 October 19, 2016, March 06, 2017 and April 06, 2017; Housing Board vide letter dated March 21st, 2017 replied that they have taken the issue with Central Board of Indirect Taxes and Customs (CBIC); as the Haryana Housing Board did not respond further, the appellant served a legal notice, dated October 04, 2017, on Haryana Housing Board; the appellant along with other contractors requested the Housing Board to give an affidavit on the service tax paid by the Board; as the Board did n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.4385/2018, Service Tax Department themselves stated before the Hon'ble High Court that the subject refund would accrue to the Board and as the appellant is the ultimate beneficiary, a fresh application may be filed by the appellant; therefore, the refund application filed by the appellant on 14th June, 2019 should be considered as modification of the refund application filed by the Board. It has been held in the following cases that any revision or modification to refund application will not affect the original application: * Shri Jagdamba Polymers Ltd. -2013 (289) ELT 429 (Guj.) * Movilex Irrigation Ltd. -2007 (207) ELT 617 (Tri. Mumbai) * Janson Textile Processors -2013 (298) ELT 287 (Tri. Chennai) 5. Learned Counsel for the appellants further relies on the following: * Commissioner of Central Excise, Panchkula v. Riba Textiles Ltd. 2002 (62) GSTL 136 (P&H HC) * Riba Textiles Ltd. v. Commissioner of Central Excise, Panchkula 2020 TIOL 932 CESTAT CHD * R.S. Enterprises v. Commissioner of Customs, New Delhi (ICD TKD) 2023 (384) ELT 711 (Tri. Del.) * Marshal Foundry & Engg. Pvt. Ltd. v. Commissioner of CGST, Faridabad 2023 (4) Centax 254 (Tri. Chan) * Team HR Ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re not applicable. In view of the clear-cut directions from the Hon'ble High Court Order dated 30.05.2019, the appellant (petitioner therein) needed to file a fresh application and accordingly, the appellants filed an application and the refund was granted within three months of the same and therefore, no interest is payable. 8. Heard both sides and perused the records of the case. The brief issue that requires to be decided in the case is as to whether the appellants are eligible to claim interest on the refund granted to them. The appellants are contractors and have rendered services to Haryana Housing Board. As per the agreement, it was decided that the Board and the appellants would pay the service tax payable. The appellant did not discharge service tax liability during the period July 2012 to 2016. They claim that on being persuaded by the Department, the appellant deposited 100% of the applicable tax in terms of Rule 2A of Service Tax Rules; at the same time, Haryana Housing Board have also deposited 50% of the service tax payable in terms of the Contract. Thereby service tax was paid @ 150% of the tax payable. Meanwhile, some contractors approached the Hon'ble Punjab & Har ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horities stands sanctioned in favour the petitioner-firm towards full and final settlement of the claim as per the aforesaid order dated 30.05.2019 passed by this Court. Although the petitioner may have a right to raise the issue of award of interest, however, we are not inclined to entertain such a plea in writ jurisdiction keeping in view the balance of equities and the peculiar circumstances of this case, as also the graceful approach of the Tax Authorities in not adhering to strict compliance of the statutory provisions. 11. In the instant case, the appellants are seeking interest on that portion of the service Tax paid by M/s Haryana Housing Board under an agreement between them. The appellants have initially sought refund from the Haryana Housing Board. Haryana Housing Board filed a refund claim on 03-05-2017. Meanwhile, some contractors approached the Hon'ble High Court. High Court directed, vide interim order that such refund be granted to the Board (so that they can in turn return to various contractors). Service tax department intervened in the case by filing an application before the Court the Hon'ble High Court submitting that it may not be possible for the department ..... X X X X Extracts X X X X X X X X Extracts X X X X
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