Case Details: Commissioner of Customs and Central Excise, Hyderabad vs. Credible Engineering Construction Projects Ltd. (2026) 42 Centax 2 (Telangana)
Judiciary and Counsel Details
- N. Tukaramji & Sujoy Paul, JJ.
- Shri Dominic Fernandes, Sr. Standing Counsel for CBIC, for the Petitioner.
- Shri Karan Talwar, Adv., for the Respondent.
Facts of the Case
The assessee had paid service tax voluntarily, though the same was not payable, claiming that such payment was made by mistake of law. A refund claim was filed, and the issue arose as to whether the limitation under Section 11B of the Central Excise Act, 1944, would apply in such circumstances. The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), in the impugned order, relied upon the decision in K.V.R. Construction [2018 (14) G.S.T.L. J70 (S.C.)] and held that Section 11B could not be applied where tax was paid by mistake of law. It was also noted that similar views had been taken in Vasudha Bommireddy [2020 (35) G.S.T.L. 52 (Telangana)] and Hind Agro Industries Limited [2008 (221) E.L.T. 336 (Del.)]. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that the issue was no longer res integra and had already been considered in earlier decisions. The Court held that where service tax was not payable and was paid by mistake of law, the department could not retain such amount. It was further held that the bar of limitation under Section 11B of the Central Excise Act, 1944, could not be pressed into service in such cases. Accordingly, no substantial question of law arose against the order of the CESTAT and the appeal was dismissed.
List of Cases Reviewed
- Credible Engineering Construction Projects Ltd. v. Commissioner — Final Order No. A/30082/2022, dated 5-9-2022 by CESTAT, Hyderabad — Affirmed [Paras 3, 6, 8]
List of Cases Cited
- Commissioner v. K.V.R. Construction — 2012 (26) S.T.R. 195 (Kar.) — Noted [Paras 10, 11, 12]
- Commissioner v. K.V.R. Construction — 2018 (14) G.S.T.L. J70 (S.C.) — Referred [Para 11]
- Hind Agro Industries Limited v. Commissioner — 2008 (221) E.L.T. 336 (Del.) — Followed [Paras 9, 10]
- Mafatlal Industries Ltd. v. Union of India — 1997 (89) E.L.T. 247 (S.C.) — Noted [Paras 8, 9, 10]
- Vasudha Bommireddy v. Assistant Commissioner — 2020 (35) G.S.T.L. 52 (Telangana) — Followed [Paras 12, 13]
