Order date – 29 August 2022

Facts – 

• The appellant, GUJARAT CHAMBER OF COMMERCE AND INDUSTRY, was engaged in providing services under various categories such as Club & Association Service, Mandap Keeper Service, etc and was holding service tax registration on 25.03.2013.
• The appellant filed eight refund claims for the Service tax paid by them on 27.01.2020 for the period from 2010-2011 to 2017- 2018 (April to June-2017) contending that they being incorporated members organization are not liable to pay Service tax and relied on the Hon’ble Supreme Court’s case of Calcutta Club Limited
• On verification of the refund claim, it was found that all the claims are liable for rejection and therefore the show cause notices were issued for all the claims separately. The said show cause notices were adjudicated by the adjudicating authority separately and all the refund claims were rejected on the ground of time bar and relying upon the judgment of Hon’ble Supreme Court of India in case of M/s. Mafatlal Industries vs. Union of India.
• Aggrieved the appellant filed an appeal.

Issue – 

• Whether the refund claims by the appellant is barred by time under section 11B?

Order – 

• The submission of the appellant that they being a member of FICCI and was one of the party in the Culcutta Club Limited case, the period of limitation should start from the date of the judgment of the Supreme Court was rejected by the Tribunal and it was held that all the parties in the Culcutta Club Limited was litigating their own case and not on behalf of their members, therefore, it cannot be said that the appellant was anywhere concerned with the cases decided by the Hon’ble Apex Court in the Culcutta Club Limited case.
• In respect to the submission of the appellant that since the service tax itself was not payable on the service of Club and Association as laid down by the Apex Court in the Culcutta Club Limited case the refund of the same will not governed by the provision of Section 11B. In this regard, Tribunal observed that the appellant have admittedly paid the Service tax under the head of Club and Association. Therefore, the refund of such service tax shall be governed by Section 11B as held by the Hon’ble Supreme Court in the case of Mafatlal Industries Limited.   
• Secondly, the appellant since filed the refund claim after one year from the date of payment of service tax, the same is hit by limitation.
• Therefore, the order was upheld and appeal was dismissed.