Refund of service tax paid under mistake of law

 

Ambience Constructions India Ltd vs. Comm. of ST, Hyderabad- 2013 (31) STR 343 (Tri.- Bang)

Facts:

The Appellant, engaged in providing services of lodging and boarding in a hotel, paid service tax on 16-01-2008 under the category of "Renting of immovable property". Since the taxing entry specifically excluded the said activity, the Appellant filed a refund claim on 28-01-2009 by virtue of payment under mistake of law.

Held:

The Hon. Tribunal relying on Mafatlal Industries vs. UOI 1997 (89) ELT 247 (SC) dismissed the appeal and held that since the provisions of law excluding the said activity existed while the payment was made and also when the refund claim was filed, the provisions of section 11Brelating to time bar cannot be ruled out on the pretext of "payment under mistake of law" and the refund was eligible for rejection.