GST DAILY – 356 : Refund of service tax paid on booking amount of flat is admissible if allottees cancelled their booking: CESTAT

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Refund of service tax paid on booking amount of flat is admissible if allottees cancelled their booking: CESTAT

THE CESTAT, WEST ZONAL BENCH, MUMBAI Kanakia Spaces Reality Pvt. Ltd. V/s Commissioner of CGST & Central Excise, Mumbai, decided on 14-3-2024

  👉 Issue:-

✔️ What would be situation if allottees cancelled their booking flat under construction?

👉 The Hon’ble CESTAT Judgement:-

✔️ Where assessee filed refund claim for service tax paid on cancelled bookings under Section 142(5) of CGST Act, 2017, CESTAT held that no service was provided, and amount deposited was merely deposit which Department cannot retain.

Section 142(5) read with Section 174 of Central Goods and Services Tax Act, 2017 read with Rule 6(3) of Service Tax Rules, 1994