{"id":3502,"date":"2025-04-28T17:40:14","date_gmt":"2025-04-28T12:10:14","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=3502"},"modified":"2025-04-28T17:40:14","modified_gmt":"2025-04-28T12:10:14","slug":"hc-rules-limitation-u-s-11b-doesnt-apply-to-service-tax-refunds-paid-by-mistake","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/hc-rules-limitation-u\/s-11b-doesnt-apply-to-service-tax-refunds-paid-by-mistake","title":{"rendered":"HC Rules Limitation u\/s 11B Doesn\u2019t Apply to Service Tax Refunds Paid by Mistake"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000391751\/limitation-under-section-11b-of-central-excise-act-does-not-strictly-apply-to-refund-claims-for-service-tax-paid-under-a-mistake-of-law-hc\">Heliocon Agro Chemicals Ltd. Versus Union of India- (2025) 29 Centax 287 (Kar.)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>R. Nataraj<\/strong>, J.<\/li>\n<li><strong>S\/Shri Ganesh V. Deshpande for Ananth S. Jahagirdar<\/strong>, Advs., for the Petitioner.<\/li>\n<li><strong>Shri Sudhirsingh R. Vijapur<\/strong>, Deputy Solicitor General of India, for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The petitioner, a recipient of goods transportation services for chemical fertilizers, paid service tax under a mistaken understanding of the law, despite the exemption under Notification No. 3\/2013-ST dated 01-03-2013. After realizing the mistake, the petitioner filed a refund claim with the Department. The claim was rejected by the Department on the grounds that it was filed beyond the limitation period prescribed under Section 11B(1) of the Central Excise Act, 1944. Subsequently, the petitioner filed a writ petition under Article 226 of the Constitution of India, challenging the rejection and asserting that the payment was made under a mistake of law.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The Hon\u2019ble High Court held that the limitation under Section 11B(1) does not apply to refund claims for service tax paid under a mistake of law. The Court directed the Revenue to process the refund, citing the principles of restitution under Section 72 of the Indian Contract Act, 1872. The Court also affirmed that a writ petition under Article 226 is maintainable in such cases.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2016%20(42)%20S.T.R.%20J274%20(S.C.)&amp;itemType=AP\">Bengal Investments Ltd. v. Assistant Commissioner<\/a> \u2014 2016 (42) S.T.R. J274 (S.C.)\u2014 Referred [Para 8]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2012%20(26)%20S.T.R.%20195%20(Kar.)&amp;itemType=AP\">Commissioner v. K.V.R. Construction<\/a> \u2014 2012 (26) S.T.R. 195 (Kar.) \u2014 Referred [Para 4]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=1997%20(89)%20E.L.T.%20247%20(S.C.)&amp;itemType=AP\">Mafatlal Industries Ltd. v. Union of India<\/a> \u2014 1997 (89) E.L.T. 247 (S.C.) \u2014 Relied [Para 10]<\/li>\n<li>Shashidhar Bhat v. Union Of India \u2014 W.P. No. 53664 of 2016, decided on 21-1-2020 by Karnataka High Court \u2014 Referred [Para 4]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2008%20(221)%20E.L.T.%20163%20(S.C.)&amp;itemType=AP\">Singh Enterprises v. Commissioner<\/a> \u2014 2008 (221) E.L.T. 163 (S.C.) \u2014 Referred [Para 8]<\/li>\n<\/ul>\n<h2><em>List of Notifications Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%203%2F2013-ST&amp;itemType=AP\">Notification No. 3\/2013-ST<\/a>, dated 1-3-2013 [Paras 3, 9, 12]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Heliocon Agro Chemicals Ltd. Versus Union of India- (2025) 29&hellip;<\/p>\n","protected":false},"author":8,"featured_media":3534,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-3502","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>HC Rules Limitation u\/s 11B Doesn\u2019t Apply to Service Tax Refunds Paid by Mistake<\/title>\n<meta name=\"description\" content=\"High Court holds that Section 11B limitation doesn\u2019t bar service tax refund wrongly paid due to a mistake of law, despite the exemption.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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