Order date – 12 August 2022

Facts – 

• The Appellant, Kanubhai Ramjibhai Makwana, have filed refund claim for an amount of Rs.22,77,511/- on 11.11.2016 before the Assistant Commissioner under Section 102 of the Finance Act, 1994.
• The adjudicating authority rejected the refund amounting of Rs.18,13,698/- on the ground that under the Provision of Section 102(1)(a), it is clear that the exemption applicable only when service is provided to Government, local authority or Governmental authority by way of Construction, Erection, Commissioning, Installing, Fitting out, Repair and maintenance, renovation of residential complex pre-dominantly meant for self use or for use of their employees.
• It was contended by the adjudicating authority that the claimant had provided the services to M/s. Gujarat State Police Housing Corporation Ltd. (GSPHCL) is a company and not a Governmental Authority. Hence, the exemption is not applicable. Also, the refund was rejected on ground of limitation.
• Aggrieved the appellant filed an appeal.

Issue – 

• Whether the Commissioner was right in rejecting the appeal on limitation and whether the services provided by the appellant to GSPHCL falls under the category of services provided to government or governmental authority and eligible for exemption under Section 102 of the Finance Act, 1994?

Order – 

• The Tribunal observed that once the appellant have filed a condonation of delay application where delay is well within period of 30 days after stipulated period of 60 days, the Commissioner (Appeals) should have taken a lenient view and should have condoned the delay, accordingly, the order of rejection on time bar is not sustainable.
• Relying on Senior Regional Manager, Tamil Nadu Civil Supplies Corporation, Thanjavur Vs. Principal Chief Commissioner of GSt & C.Ex., Chennai the Tribunal was further of the view that even the corporation/board constituted under the act of State Government should be considered as a governmental authority.
• And since the GSPHCL is a 100% owned by Government of Gujarat, the exemption provided to the government or governmental authority is applicable in respect of service provided by appellant to GSPHCL.
• The order was set aside and the appeal was allowed.