Voluntary Service Tax Payment u/s 73(3) Constitutes Final Settlement, Not Mere Deposit: CESTAT Dismisses...
CESTAT ruled that a voluntary service tax payment under Section 73(3) is a final settlement and not eligible for a refund.Summary
The Ahmedabad Bench of CESTAT dismissed an appeal filed by Amplus Capital Advisors Pvt. Limited, upholding the rejection of their refund claim. The appellant had voluntarily paid service tax, interest, and penalty during a departmental inquiry, specifically requesting closure of proceedings under Section 73(3) of the Finance Act, 1994. Subsequently, they sought a refund, arguing the services were not taxable under the Place of Provision of Services Rules, 2012. CESTAT held that a voluntary payment under Section 73(3) constitutes a final settlement, as established in Amar Engineering Company vs. Commissioner of CE & ST, Vadodara-1. The Tribunal emphasized that once such a payment is made and communicated to the department, neither party can reopen the matter, and seeking a refund is contradictory to the provision. The court found no merit in the appeal and upheld the original order, stating the payment was a voluntary settlement of proceedings, not a mere deposit.
(Source：Taxscan)