Splitting Invoices for Furniture and Building Rent Should Not Deny Legitimate Refund When Service Tax is Properly Paid: CESTAT

The CESTAT (Customs, Excise, and Service Tax Appellate Tribunal) has ruled that "splitting invoices for furniture and building rent should not deny legitimate refund when service tax is properly paid." The tribunal emphasized that if a service, even when itemized, falls under a valid service category and the service tax has been correctly discharged, a refund cannot be denied merely on the basis of how the invoice is split. Specifically in the context of Renting of Immovable Property service in an SEZ, the tribunal mandated a refund if the underlying service was used for authorized operations.