Service Tax Refund Not Applicable Without Supply Under GST Invoices

During judgment of a recent case, the Customs Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore has stated that Service Tax Refund paid are not applicable to subsequent GST invoices In a recent announcement, the Finance Ministry has said that no GST invoice will be required for the goods that were taken abroad for exhibitions or other kinds issued as per the customer’s request.

M/s TPI Advisory Services India is the appealing party, in this case. it is registered for providing services related to Business Management and Consultancy. They had filed a refund application on March 28, 2018, for the refund of Service Tax of Rs.17,84,952/ – under Section 11B of Central Excise Act, 1944. As In their refund claim, they informed that their client didn’t accept the Service Tax invoices and as per the client’s request, the appealing party had raised the Credit Notes and had paid the GST with new invoices raised subsequently and hence they filed this refund application.

After a proper check, verification and scrutiny of the refund claim, the Assistant Commissioner of Central of Tax, Bangalore dismissed the claim of Rs.17,84,952/ – for the reasons that the raising resulting invoices under GST Know all the important details regarding revise tax invoice under GST. Also, we have added the major difference between a debit note and credit note according to the request of the customers and claiming for the refund of Service Tax already paid under the erstwhile Finance Act, 1994 is not under the domain of the law to consider for the refund of Service Tax paid. Aggrieved by the said request, the applying party filed an appeal before the Commissioner (A) who rejected the appeal in favor of the department.

On this appeal, the regional bench of Judicial Member S.S Garg upheld the order for the income and held, “The reality of the case makes it clear that the appealing party has issued subsequent invoices with no supplies under the GST regime which in itself is violation warranting rejection of the refund. The appellant has violated the provisions of the GST law by issuing an invoice without a supply of goods. In perspective on my conversation above, I am of the considered view that there is no infirmity in the impugned order which is maintained by rejecting the appeal of the appealing party.”