Service Tax Refund Allowed Regarding Cancellation of Flat by GST & CX Commissioner

In the context of flat cancellation, the commissioner of GST and CX (Appeals) Mumbai admits refunding the service tax.

The petitioner has booked the residential flat in the project of Bharat Infrastructure & Engineering Pvt. Ltd. for the total contract amount of Rs. 52,58,245.

The receipt of Rs 25,00,000 and 27,50,000 from the petitioner the service tax of Rs 90,625 and Rs. 99,688 was issued to Mr Haresh V Kagrana (HUF) M/s Bharat Infrastructure & Engineering Pvt. Ltd.

Bharat Infrastructure & Engineering Pvt. Ltd. has not refunded the service tax amount to the petitioner since he has already cancelled the flat.

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Nazim Arshi the commissioner states that the petitioner received no service from the builder because the petitioner cancelled the service and the contract has been terminated.

Moreover, the prerequisite of the applicable date of 1 year and payment date according to the section 11B of CEA is not relevant in the prevailing case. The tax paid through the petitioner has the deposit nature, unlike service tax.

“The date of cancellation of the flat will be considered as the relevant date for calculating the time limit of one year, as the event that led to the refund of taxes Simple steps to claim and know the status of income tax return refund online on government income tax website. Find the full process enclosed with the article. Read more is the cancellation by the buyer.”

Thus the claim is not caught by the principle of unfair improvement.