𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 – 𝗖𝗘𝗦𝗧𝗔𝗧 𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶 𝗥𝗲𝗳𝘂𝗻𝗱 𝗔𝗹𝗹𝗼𝘄𝗲𝗱 𝗳𝗼𝗿 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗣𝗮𝗶𝗱 𝗨𝗻𝗱𝗲𝗿 𝗣𝗿𝗼𝘁𝗲𝘀𝘁 📢 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗛𝗲𝗹𝗱: "Debiting disputed service tax amounts in the profit and loss account does not amount to passing the burden to customers indirectly. Refund allowed to the appellant."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗔𝗽𝗽𝗲𝗹𝗹𝗮𝗻𝘁: M/s Sarovar Portico 𝗜𝘀𝘀𝘂𝗲: Whether debiting service tax amounts in the P&L account constitutes passing on the tax burden. 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: Room sales (October 2013 – March 2016). The appellant deposited service tax under protest after audit findings and later sought a refund.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that service tax paid under protest isn’t considered passed on to customers, as it wasn’t charged in invoices. Debiting amounts in the profit and loss account doesn’t imply unjust enrichment, as they can be adjusted through the capital account. Refund was granted with consequential benefits.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s Sarovar Portico vs. Commissioner, Central Excise & CGST, Jaipur I 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 30 January 2023 📜 Significance: Upholds taxpayer rights for refunds when service tax is paid under protest without burdening consumers.