Order Date – 10 October 2023

Parties: The Commissioner of GST & Central Excise Vs M/s. Scope International (P) Ltd. (sought to be changed as Standard Chartered Global Business Services Private Limited)

Facts –

• The Respondent, M/s. Scope International (P) Ltd., engaged in the activity of export of information technology and software related services. Its output services are exported without payment of tax. On receipt of various input services the respondent availed cenvat credit.
• They filed four refund claims for refund in cash of unutilized cenvat credit for different periods. The original authority partly allowed the refund claims and partly rejected the claims. The refund sanctioning authority had directed the respondent reversal of rejected cash refund amount.
• On an appeal filed by the respondent the Commissioner (Appeals) allowed the appeals. Aggrieved, the department filed the appeal.

Issue –

• Whether the original authority is justified in directing the respondent to reverse rejected cash refund amount?

Order –

• The Tribunal observed that from the impugned order it is clear that the original authority has directed the respondent to debit / reverse the cenvat account to the tune of which has not been sanctioned. The respondent has already debited the amount in their cenvat account before filing the refund claim. The original authority ought not to have directed the respondent to reverse the credit again for the mere reason that the refund has not been sanctioned in cash.
• It can be seen that by the impugned order, the Commissioner (Appeals) has not sanctioned any amount as refund in cash. The respondent has been allowed to take recredit of the amount which has not been sanctioned to them as cash.
• The appeal filed by department alleging that credit availed by the respondent is ineligible for the reason that the premises is not registered and that the input services have no nexus with the output services is without any substance.
• The appeals are dismissed.