Order date – 30 June 2022

Facts-

• The appellant, M/s BELLATRIX CONSULTANCY SERVICES, had entered into an agreement with Professional Lien Search LLC, a company based in the USA that provides support services to real estate property buyers in the USA. 
• The appellant filed returns for the half-yearly period from April to September 2016, October 2016 to March 2017 and for the quarterly period from April to June, 2017. Subsequently, the appellant learnt that it was not liable to pay service tax on the export of services in Chapter V of the Finance Act, 1994.
• The appellant filed a claim before the Assistant Commissioner of Central Excise for a refund of Rs. 27,70,791. The Assistant Commissioner granted a refund of Rs. 11,90,271 and denied the claim for the balance.
• Aggrieved, the assessee challenged the Order-in-Original before the Court.

Issue-

• Whether the tribunal is justified in denying the right of claim for refund of the amount paid as service tax on the grounds of limitation under Section 11B of the Central Excise Act, 1944?

Order-

• The Court observed that the services rendered by the assessee satisfy all conditions of Rule 6A of the Service Tax Rules, 1994 and the services provided by it are export services. 
• The Court referred to the SC case of M/s. Shiv Shanker Dal Mills etc. v. State of Haryana and others and held that the refund cannot be denied on the ground of limitation. It is entitled to a refund of the tax. 
• The court set aside the order passed by the Assessing Authority and by the Commissioner (Appeals) and the CESTAT, so far as the refund amount of Rs.15,80,520.
• The court further held that Revenue shall refund the amount with interest as per Section 11B of the Central Excise Act, 1944 within a limit of three months.