Order Date – 16 March 2023

Parties: M/s Lupin Limited Vs Commissioner of Central Tax & Customs (Appeals), Guntur

Facts –

• The Appellant, M/s Lupin Limited, had claimed refund on Krishi Kalyan Cess paid on services received for transportation of goods, Manpower supply-recruitment, maintenance and repair service, technical testing analysis service totalling Rs. 5,46,759/-., Service tax paid on input services received amounting to Rs. 7,86,359/-, and Credit taken on imported goods at Rs. 11,66,539/-.
• The same was rejected. Being aggrieve the appellant had filed an appeal

Issue –

• Whether the appellant is entitled to refund claim?

Order –

• The Tribunal observed that following the ruling of larger bench in the case of Gauri Plastic Culture Pvt Ltd.[2019-TIOL-1248-H.C.- Mumbai-C.Ex-LB] wherein it was held that a non-utilised portion of Cenvat credit cannot be claimed as refund in cash, hence the refund for KKC Rs. 5,46,759/- is rejected.
• So far, the amount of Rs. 4,15,012/- is concerned, credit was taken beyond a period of 12 months from the date of invoice/bill of entry. The same is also rejected. So far, the balance amount of refund is concerned, the appellant has rightly taken credit in view of Rule 2(l) of CCR which entitles a manufacturer to claim Cenvat credit on input services utilize in manufacture of dutiable taxable goods.
• It was held that there is no bar in cross utilisation of Cenvat credit once taken, either for payment of Central Excise duty or service tax, in view of the provisions of Rule 3 or 4 of CCR. Hence the appeal is allowed partly.