CESTAT allows Refund of Service Tax paid Upfront on Long-Term Lease of Industrial Land [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore bench has held that the refund allowable on the amount of service tax paid on long-term lease of industrial land.

The appellant had taken industrial lands on long term lease from Kerala Industrial Infrastructure Development Corporation (KINFRA) bypaying an upfront amount on long term lease, along with service tax. Thereafter, with the insertion of Section 104 into Chapter V of the Finance Act, 1994 with retrospective effect, the appellants requested for refund of the service tax paid by them on the upfront amount on long term lease of industrial lands. The above request, on adjudication came to be rejected, which rejection having upheld vide impugned Orders-in-Appeal, present appeals have been filed before this forum.

The Tribunal bench comprising Shri P. Dinesha, Judicial Member has observed that the issue involved has been answered in favour of the taxpayer by this Bench in the case of Comfort Night Linen Products. In the said case, the Tribunal held that since the appellants have produced sufficient documents to prove the payment of service tax, refund shall be granted.

Quashing the impugned orders, the Tribunal held that “Thus,I find that the assertions of both the parties are correct, inasmuch, as the issue involved in these appeals has been answered by the above ruling of this Bench for which reason, the impugned orders cannot be sustained and hence, the same are set aside.”

Support our journalism by subscribing to TaxscanAdFree. Follow us on Telegram for quick updates.