Transitional refund eligibility for reverse-charge tax on external borrowings survives absent assessment or adjudication proceedings.
Case-Laws
GST
Section 142(8)(a) of the CGST Act bars a transitional refund only where service tax becomes recoverable through assessment or adjudication proceedings. An information inquiry, voluntary payment, and closure of investigation do not by themselves create a statutory recovery. Service tax paid under reverse charge on external commercial borrowings after the GST transition therefore remains eligible for consideration as a refund under section 142(3), read with the applicable saving provision, where no assessment or adjudication was instituted. The appellate and Tribunal orders rejecting the claim were quashed, and the refund was remitted for processing under section 142(3).
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