Kaya Designer Launge Versus CGST C.E & C. C-Bhopal
Service Tax
2018 (8) TMI 1688 – CESTAT NEW DELHI – 2019 (25) G. S. T. L. 98 (Tri. – Del.)
CESTAT NEW DELHI – AT
Dated:- 29-8-2018
Appeal No. ST/50256/2018-SMC – Final Order No. 52874/2018
Service Tax
Hon'ble Mr. V. Padmanabhan, Member ( Technical )
None for the appellant
Sh. K. Poddar, DR for the respondent
ORDER
Per : V. Padmanabhan
1. When the appeal was called, none appeared on behalf of the appellant. Shri K. Poddar, Ld. DR is present on behalf of the Revenue. The appeal was adjourned at the request of appellant repeatedly at least six times. Even today none is present on behalf of the appellant. Since the appeal cannot be kept pending endlessly, I have no option but to take up the issue for decision on merit, even in the absence of the representative of the appellant.
2. Heard Ld. DR for the Revenue.
3. The brief facts of the case are that the appellant is engaged in the stitching of cloths and occasion
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t of the total refund claimed as above, an amount of Rs. 1,63,305/- which was paid on 23/07/2014 and for which the refund claim was filed on 06/08/2015, will be barred by limitation of time as prescribed under Section 11B of the Central Excise Act, 1944. The rest of the refund claim was also rejected on merit. Aggrieved by the rejection of refund in the impugned order, the present appeal has been filed.
5. Heard Shri K. Poddar, Ld. DR. He submitted that the issue regarding the applicability of Section 11B for the Refund of Service Tax, has been decided by the Larger Bench in the case of Veer Overseas Ltd V/s Commissioner 2018-TIOL-1432-CESTAT-CHD-LB. The Larger Bench has taken the view that any refund of Service Tax will be covered within the time limits strictly specified by Section 11B and the same will also be applicable to any Service Tax which is paid in the mistaken notion that Service Tax was payable, even though there was no requirement to pay such tax. On merits also, Ld. DR
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f the clarification as above by the CBEC, it is evident that no Service Tax can be charged on stitching/ tailoring charges under the category of Fashion Designing. Consequently, no Service Tax is payable on the stitching charges. The cost of raw materials used by the appellant and recovered from their customers also cannot be included for payment of Service Tax. Under the category of “Fashion Designing”. However, amounts recovered by the appellant towards the activity of designing such as design of Jodhpuri, blazer etc, which was carried out by the appellant at the request of the customers will squarely be covered within the category of fashion designing and Service Tax is liable to be paid for amounts recovered towards this.
8. The next I turn to the issue of limitation. The lower Authorities have given detailed findings that the Service Tax amounting to Rs. 1,63,305/- paid on 23/07/2014 and for which refund has been claimed on 06/08/2015, is hit by time limit under Section 11B. The
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