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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
MS. JYOTI BALASUNDARAM, J.
Areva T & D India Ltd. -Appellant
Versus
Commissioner of Central Excise (LTU), Chennai -Respondent
FINAL ORDER NO. 803 OF 2010 APPEAL NO. E/733 OF 2009
Decided On : 22-07-2010
Joseph Prabhakar,T.H. Rao
1. The assessees herein paid service tax by mistake, i.e., the payment was made even though the service was not taxable at that point of time and they subsequently took credit of the tax paid. The objection of the department is to availment of credit on the ground that the only method to be followed by the assessees was filing refund claim. The assessees also had not disputed that they were not entitled to credit but only argued that the demand is barred by limitation as there was no suppression on their part and therefore, notice should have been issued within the normal period of limitation. They submit that at the time of taking the credit of tax paid by mistake, they were under the bona fide belief that they were eligible to credit. I find that there is no basis for the bona fide belief that they were entitled to credit. The fact of taking credit was not disclosed to the authorities and therefore, extended period of limitation has rightly been invoked against the assessees. In view of the matter, I hold that the demand is sustainable and accordingly, uphold the impugned order and dismiss the appeal.
