Authority: High Court of Judicature at Madras

Order Date: 14 July 2026

Case Overview

  • Parties: Appellant – Shen Long Bio‑Tech (India) Private Limited, Chennai; Respondent – Commissioner of GST and Central Excise, Chennai North Commissionerate.
  • Appeal filed under Section 35G of the Central Excise Act, 1944 against Final Order No.41012/2019 dated 05‑08‑2019 issued by the Customs, Excise & Service Tax Appellate Tribunal, Chennai.
  • Core issue: Whether the appellant is entitled to exemption under Notification No.41/2016 and Finance Act 2017 (Section 104) for service tax on development charges, and whether the six‑month limitation for refund claim should be measured from the date of presidential assent (31‑03‑2017) or from the SIPCOT certificate date (19‑12‑2017).
  • Relevant statutory provisions: Finance Act 2017, Section 104(1)‑(3) providing retrospective exemption for service tax on one‑time upfront amounts for leases of 30 years or more, and mandating refund claim within six months of the Act’s assent.
  • Evidence: SIPCOT issued a certificate on 19‑12‑2017 confirming payment of service tax amounting to Rs 31,18,834 and earlier a letter dated 14‑09‑2017 informing the appellant of eligibility for refund.

Observations & Reasoning

  • The Court noted that Section 104(3) requires the refund application to be filed within six months of the date on which the Finance Bill receives presidential assent, but interpreted the commencement of the limitation period to be the date of the SIPCOT certificate, as the certificate is a mandatory prerequisite for a refund claim.
  • The Court relied on Bombay High Court precedent (M/s. JSW Dharmatar Port Pvt. Ltd. v. Union of India, 2019 (20) G.S.T.L. 721 (Bom.)) which held that the six‑month period must be reckoned from the date of the service provider’s certificate.
  • The Tribunal’s calculation of the limitation period from the assent date (31‑03‑2017) was held erroneous.
  • Since the certificate was dated 19‑12‑2017, the appellant’s refund application filed on 26‑02‑2018 falls within the six‑month window.
  • The exemption under Notification 41/2016 and Finance Act 2017 is applicable retrospectively to services provided between 01‑06‑2007 and 21‑09‑2016, covering the appellant’s development charges.

Final Outcome

  • The Civil Miscellaneous Appeal is allowed.
  • The respondent (Commissioner of GST and Central Excise) is directed to consider the appellant’s refund application and pass appropriate orders within two months of receiving a copy of this judgment.
  • No order as to costs.

Topics: Service Tax Refund, Finance Act 2017, Limitation Period