Service Tax
TRT-2025-
Cestat Mumbai
Date:-10-04-23
In:-
Issue Favourable to Tax Payer ?:-
Order date – 10 April 2023
Parties – M/s BNP Paribas India Solutions Pvt. Ltd. Vs Commissioner of GST & Central Excise-Mumbai East
Facts –
- The appellant, M/S BNP PARIBAS INDIA SOLUTIONS PVT. LTD., are the exporter of service in the nature of Information Technology Software Service. For the quarter from April 2017 to June 2017 appellant had accumulated CENVAT Credit of around Rs. 12 crores.
- The appellant filed a claim for refund of the said credit under the provisions of Notification No. 27/2017-CE (NT) dated 18.06.2012.
- However, a deficiency memo was issued to the appellant on 02.05.2019, and subsequently, an Order-in-Original was passed, wherein a portion of the refund was allowed, and the rest was rejected.
Issue –
- Whether the deficiency memo issued to the Appellant can be considered as the show-cause notice?
Order –
- It is observed that the deficiency memo dated 02.05.2019 did not invoke any provisions of the CENVAT Credit Rules, especially Rule 14. Therefore, the said deficiency memo cannot be considered as a show cause notice.
- Consequently, the denial of the refund of Rs. 25,81,828/- to the appellant without any show cause notice is not sustainable in law.
- Hence, the impugned order through which the refund of accumulated CENVAT Credit of Rs. 25,81,828/- was rejected is set aside, and the Revenue is directed to refund the same to the appellant. The appeal is allowed.
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