SHEN LONG BIO TECH (INDIA) PRIVATE LTD vs COMMISSIONER OF GST AND CENTRAL EXCISE
- Court
- Madras High Court
C.M.A.No.1711 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Reserved On: 06.07.2026 Delivered On: 14.07.2026
CORAM
THE HONOURABLE DR JUSTICE G. JAYACHANDRAN
AND
THE HONOURABLE MRS. JUSTICE N. MALA
C.M.A.No.1711 of 2021
Shen Long Bio-Tech (India) Private Limited,
New No.17, Old No.107, F-Block,
rd
3 Street, Anna Nagar (East),
Chennai – 600 102. … Appellant
vs.
Commissioner of GST and Central Excise,
Chennai North Commissionerate,
No.26/1, M.G.Road, Nungambakkam,
Chennai – 600 034. … Respondent
Prayer: Civil Miscellaneous Appeal has been filed under Section 35G of
Central Excise Act, 1944 against Final order No.41012/2019, dated 05.08.2019
passed in Appeal No.ST/42716/2018 by the Customs, Excise & Service Tax
Appellate Tribunal, Chennai.
For Appellant : Mr.N.Murali
For Respondent : Mr.S.Gurumoorthy,
Senior Standing Counsel, &
: Mr.G.Meganathan,
Junior Standing Counsel
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J U D G M E N T
The order of the Tribunal rejecting the refund claim made by the
assessee pursuant to the Finance Act, 2017, which was given retrospective
effect, is now before this Court by way of challenge in the present Civil
Miscellaneous Appeal.
2. The short point involved in this case is if the petitioner is entitled to
the benefit of the Notification No.41/2016 dated 22.09.2016 issued by the
Ministry of Finance, Government of India, in the interest of public, exempting
taxable services provided by State Government Industrial Development
Corporations/ Undertakings to industrial units by way of granting long-term
lease of industrial plots from so much of service tax leviable thereon under
Section 66B of the said Act. The Finance Act, 2017 got assent of the President
and came into force from 01.04.2017.
3. Section 104 has been inserted in Finance Act, 2017 reads as below:
(1) Notwithstanding anything contained in
section 66, as it stood prior to the 1st day of July, 2012, or
in section 66B, no service tax, leviable on one time upfront
amount (premium, salami, cost, price, development charge
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C.M.A.No.1711 of 2021
or by whatever name called) in respect of taxable service
provided or agreed to be provided by a State Government
industrial development corporation or undertaking to
industrial units by way of grant of long term lease of thirty
years or more of industrial plots, shall be levied or
collected during the period commencing from the 1st day
st
of June, 2007 and ending with the 21 day of September,
2016 (both days inclusive).
(2) Refund shall be made of all such service tax
which has been collected, but which would not have been
so collected, had sub-section (1) been in force at all
material times.
(3) Notwithstanding anything contained in this
Chapter, an application for claim of refund of service tax
shall be made within a period of six months from the date
on which the Finance Bill, 2017 receives the assent of the
President.
4. Section 104(1) of Finance Act, 2017, got amended and given
retrospective effect to extend the exemption granted; sub-Section (2) of Section
104 pertains to refund to be granted to the service tax already paid and Sub-
section 104(3) of the Finance Act, 2017 enables the taxpayer to seek a refund
within six months from the date of assent to the Act.
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5. At the time of admitting the appeal, the following substantial
questions of law were framed for consideration:-
(i)Whether the Appellate Tribunal in the
facts and circumstances of this case was correct in
dismissing the appeal in rejecting the claim of refund
application?
(ii)Whether the Appellate Tribunal was
correct in applying the statutory provisions for
rejecting the refund claim when the refund claim is
through the Finance Act, 2017?
(iii)Whether the Appellate Tribunal is
justified in rejecting the claim of refund after
observing that even from the letter dated 14.09.2017
of the SIPCOT still the claim is barred by limitation.
Whereas, it is not so and the claim is within the period
of limitation?
(iv)Whether the Appellate Tribunal is
correct in adopting the technicalities and narrow
approach when the intention/object of the Government
itself is to encourage the development of Industries
allotted by Industrial undertakings/Corporation?
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C.M.A.No.1711 of 2021
(v)Whether the Appellate Tribunal was
correct in dismissing the appeal even if the period of
limitation is calculated from, the date of assent of the
President which is only the minimal delay of four
months and 26 days?
6. The assent to the Act was granted on 31.03.2017 and the refund
claim made by the appellant on 26.02.2018, which was found to be beyond six-
months period, was rejected by the respondent.
7. It is an undisputed fact that the application for refund will be
entertained only if a certificate from SIPCOT confirming the payment of service
tax is annexed. In this case, the certificate from SIPCOT was issued to the
appellant on 19.12.2017. Earlier, on 14.09.2017, SIPCOT had intimated the
appellant that he was entitled for refund. The two communications from
SIPCOT are extracted below:-
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8. The refund request made by the appellant on 26.02.2018 was
considered barred by limitation, reckoning the period from the date of assent of
the amendment Act. However, if the date of certificate from service provider is
taken as the date of commencement of limitation, the refund request is within
six months.
9. When a similar issue came up for consideration, the Hon’ble
Bombay High Court, in M/s. JSW Dharmatar Port Pvt. Ltd. v. Union of India,
reported in 2019 (20) G.S.T.L. 721 (Bom.) , held that to claim refund, the six-
month limitation period must be reckoned from the date of the certificate from
SIPCOT. In the present case, it is undisputed that the application for refund
claim should be accompanied by the SIPCOT’s certificate in confirmation of the
payment of service tax. Hence, following the aforesaid dictum of the Bombay
High Court, the application for refund by the appellant is construed to be within
the six-month limitation. Therefore, we hold that the Tribunal was not correct
in dismissing the appeal seeking refund of service tax on the ground of
limitation.
10. We are of the view that the Tribunal erred in reckoning the period
of limitation, which in this case commences only after the certificate by the
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service provider, namely SIPCOT. Hence, the substantial questions of law are
answered in favour of the assessee.
11. Accordingly, the Civil Miscellaneous Appeal is allowed. The
respondent is directed to consider the appellant’s refund application and pass
orders in accordance with law within a period of two months from the date of
receipt of a copy of this order. There shall be no order as to costs.
( Dr . G.JAYACHANDRAN , J. ) & ( N. MALA, J. )
14-07-2026
Index :Yes.
Neutral Citation :Yes/No.
bsm
To,
1. The Joint Commissioner (CT),
State of Tamil Nadu,
Zone VII,
Chennai.
2. The Tamil Nadu Sales Tax Appellate Tribunal (Additional Bench), Chennai.
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C.M.A.No.1711 of 2021
Dr. G.JAYACHANDRAN, J.
&
N. MALA, J.
bsm
Pre-Delivery judgment made in
C.M.A.No.1711 of 2021
Judgment delivered on
14-07-2026
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