Quilon Radio Service v. Commr. of Central Tax & CE

CENVAT CREDIT RULES, 2004

--Refund --Refund of excess paid service taxRejection of refund claim only on the ground that issue of Service Tax liability on notional interest was pending --Eligibility of --Refund could not be denied merely on the ground that some demand was pending in another case which was sub judice before the Court, therefore rejection of refund claim only on the ground that issue of Service Tax liability on notional interest was pending was not sustainable in law --Assessee was providing Renting of Immovable Property Service and filed a refund claim on account of excess payment of Service Tax. The said refund claim was rejected as time barred. Commissioner (A) allowed the said appeal and directed the original authority to decide the claim afresh on merits. Accordingly, adjudicating authority had taken the case afresh and rejected the refund claim. Held: Confirmation of demand of Service Tax on notional interest on security deposit was challenged before High Court and the same was pending before the same but rejection of the refund claim only on the ground that demand was pending in another case was not tenable in law. Further, both the cases were independent, the present case relates to the refund of excess Service Tax paid whereas the demand for Service Tax on notional interest on security deposit was altogether independent litigation which was pending disposal before High Court. Refund could not be denied merely on the ground that some demand was pending in another case which is sub judice before the Court. The rejection of refund claim was not sustainable in law