Service Tax
TRT-2025-
Cestat-Chennai
Date:-21-07-22
In:-
Issue Favourable to Tax Payer ?:- 0
Order Date – 21 July 2022
Facts –
- The Appellant, M/s. Dhyan Networks and Technologies Pvt. Ltd., had filed refund claim under Rule 5 of CENVAT Credit Rules, 2004 read with Notification No. 27/2012-CE (NT) for refund of the unutilized CENVAT credit.
- The refund claims were rejected on the ground that the closing balance of Cenvat credit at the end of the quarter as per ST-3 return was ‘nil’ by the original authority and was upheld by the Commissioner (Appeals).
- Aggrieved the appeal has been filed by the appellant.
Issue –
- Whether the rejection of CENVAT credit by revenue is justifiable?
Order –
- The Tribunal accepted the contentions of appellant and relied on the case of Scribetech India Healthcare Pvt. Ltd. V. Commissioner of Central Tax reported (Tri. Bang.) in which it was held that the condition envisaged in paragraphs 2(g) and 2(h) in Notification No. 27/2012-C.E. (N.T.), dated 18-6-2012 only provides that the amount of refund claim shall not be more than the amount lies in the Cenvat Credit account at the end of the quarter for which the claim is filed or at the time of filing of refund claim, whichever is less.
- The other ground for rejection of refund is that the invoice with regard to maintenance of cafeteria has been issued on unregistered premises and relying on the case of ABM Knowledge Ltd. V. Commissioner, the Tribunal has held that there is no requirement in CENVAT Credit Rules, 2004 that the premises should be registered for availing the credit.
- Therefore, the Tribunal held that rejection of refund is not justified. Hence appeal allowed.
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