SHRAVAN BANARASILAL JEJANI Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE appellants are in appeals against the impugned orders wherein their refund claims were rejected by the learned Commissioner (Appeals) on the ground that the refund claim is hit by the limitation prescribed in Section 11B of the Central Excise Act, 1944. Brief facts of the case are that the appellants are ultimate owner of the residential flats sold to them by the builder who paid the service tax on the residential flats. As per the Circular No. , dated 29 -1 -2009, there was no service tax liability on sale of the residential flats to the appellants. Admittedly, when no service lax was payable by the appellant therefore, they have filed a refund claim. The adjudicating authority sanctioned the refund claim but on appeal by the Revenue, the claim for refund was rejected. Aggrieved by the said order, the appellants are before me.

(2.) THE contention of the appellants is that as they were not required to pay the service tax therefore, the provisions of Section 11B of the Central Excise Act 1944, are not applicable to them. To support his contentions the learned Advocate placed reliance on the decision of the Hon'ble High Court of Karnataka in the case of CCE v. KVR Construction - : 2012 (26) S.T.R. 195 (Kar.).

(3.) HEARD both sides and considered the submissions.